Oil prices have changed little on expectations that a Fed rate hike will curb demand
Oil prices calmed on Tuesday amid concerns that further rate hikes this week to curb inflation in the US will dampen economic growth and fuel demand in the world's largest oil consumer.
Brent crude futures for the November settlement fell 7 cents, or 0.1%, to $91.93 a barrel as of 0659 GMT.
West Texas Intermediate (WTI) crude for October delivery was down 13 cents, or 0.2%, at $85.60 a barrel. The October contract expires on Tuesday and the more active November contract is down 21 cents, or 0.3%, to $85.15.
The dollar remained solid below its two-year high against its leading peers on Tuesday, ahead of a series of worldwide central bank meetings led by the Federal Reserve this week. The Fed will likely raise interest rates another 75 basis points to rein in inflation.
A stronger dollar is making dollar-denominated oil more expensive for buyers of other currencies, and concerns have risen that expected rate hikes could trigger a global recession.
Oil prices have been in a downtrend since mid-June. Fears of recession and a slowdown in growth in China remain the main bearish factors overall.
While other major economies tightened, China, the world's second-largest oil user, kept its benchmark lending rates unchanged on Tuesday as it tried to balance its sluggish economic growth against the weakening yuan.
Aggressive central bank tightening raises concerns about the rapidly weakening global economy and crude oil prices.
According to preliminary surveys, US crude inventories are estimated to have increased by about 2 million barrels in the week to September 16 last week.
The U.S. Department of Energy will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve for delivery in November and will extend the timing of its plan to sell 180 million barrels of stock to reduce fuel prices.
Signs that major producers are unable to meet their production quotas continue to give some support to prices.
An internal document from the Organization of the Petroleum Exporting Countries and its Russia-led allies known as OPEC+ showed the group fell short of its oil production target of 3,583 million barrels per day in August. In July, the group missed its target by 2,892 million barrels per day.
The issue of reviving the Iran nuclear deal remains in a stalemate, preventing the country's exports from fully returning to the market.
Russia said on Monday that unresolved issues remained in the negotiations, while France said the decision on a solution was up to Tehran.
But these are signs that higher oil prices this year are curbing demand. Vehicle travel in the US fell 3.3% in July compared to the previous year and declined in the second month.
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