Oil prices inch higher on bargain hunting ahead of Fed rate decision

Oil prices rose slightly on Tuesday with Brent crude futures up 0.2% at $72.00 a barrel and US West Texas Intermediate (WTI) crude at $67.19 a barrel, up 0.1%, from the previous day’s plunge. However, rising global supplies and demand growth concerns ahead of inflation data and a two-day Federal Reserve central bank meeting concluding on Wednesday have led to caution from investors. Tatsufumi Okoshi, a senior economist at Nomura Securities, said falling economic recovery rates in China could lead to further risk of oil prices decreasing, with WTI predicted to trade at no more than $70 a barrel.