Patroleum prices leveled off on Wednesday following declines earlier as the U.S. dollar eased before a crucial interest rate decision by the U.S. Federal Reserve.
Brent crude futures, which have risen by around 3% this week, were up 18 cents or 0.24%, at $75.50 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up 17 cents, or 0.24%, at $69.84.
A weaker dollar boosts oil demand as it makes the commodity cheaper for those holding other currencies.
Oil markets will be seeking direction from the U.S. Fed’s Federal Open Market Committee, which announces its decision on interest rates.
The expected rate hike of 25 basis points is a turnaround from the steep 50-basis-point rate rise anticipated before the recent banking turmoil, triggered by the collapse of two regional banks.
Oil prices dropped earlier in the day following an unexpected rise in U.K. inflation in February, raising fears of further interest rate hikes a day before the Bank of England announces its latest interest rate decision.