Oil prices rose in early trading, Tuesday, as investors sought to seize the opportunity for the sharp decline witnessed yesterday, but the increase was limited amid the continued state of caution before the expected monetary policy decisions from the US Federal Reserve and other central banks.
Brent crude futures rose 0.7% to $72.36 a barrel, and US West Texas Intermediate crude rose 0.5% to $67.46 a barrel.
The two benchmarks fell by about $3 a barrel on Monday, as analysts focused on global supply growth and demand concerns ahead of key inflation data and the two-day meeting of the US central bank that ends on Wednesday.
Most observers expect the US central bank to keep interest rates unchanged at its policy meeting. The rate hikes boost the dollar, making commodities denominated in it more expensive for holders of other currencies and weighing on prices.
The European Central Bank is expected to raise interest rates by another quarter of a percentage point next Thursday to curb inflation.
In China, disappointing economic data last week raised concerns about demand growth in the world's largest importer of crude, which erased the rise in prices after Saudi Arabia pledged to cut its oil production by an additional million barrels per day in July.
