Oil Eases on Rate Hike Concerns

WTI crude futures fell toward $74 per barrel on Tuesday, snapping a three-day advance as hawkish remarks from US Federal Reserve officials outweighed hopes for a demand recovery in China. San Francisco Fed Bank President Mary Daly said she expects the central bank to raise rates to somewhere over 5%, while Atlanta Fed Bank President Raphael Bostic noted that policymakers should hike above 5% by early in the second quarter and hold them there for a long time. Investors also turned cautious ahead of the Lunar New Year in China, amid fears that increased travel could lead to a surge in Covid cases in the world's top crude importer. Meanwhile, Beijing recently provided refiners and traders with a generous import quota in its second allocation for 2023, as China gears up for growth after rapidly dismantling strict Covid restrictions, as reported by Bloomberg.

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