Oil claws back some losses but strong dollar caps gains

MELBOURNE – Oil prices rose modestly in early trade on Monday after sliding to eight-month lows last week weighed down by a surging U.S. dollar and fears sharp interest rate hikes globally would spark a recession and hit fuel demand.

The dollar index climbed to a fresh 20-year high on Monday, capping oil price gains.

Brent crude futures were up 17 cents, or 0.2 percent, at $86.32 a barrel at 0116 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 21 cents, or 0.3 percent, at $78.95 a barrel. Both contracts slumped around 5 percent on Friday.

Analysts said crude should find some support as Russia reinforces troops for the war on Ukraine and European Union sanctio…

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