Crude oil futures ended higher on Tuesday, drawing support from a weakening dollar and on data showing that demand for US crude and petroleum products rose in November. However, oil prices hovered around 3-week lows earlier in the day amid concerns about the outlook for energy demand and prospect of further interest rate hikes. The Federal Reserve is widely expected to raise interest rate by 25 basis points amid signs of cooling inflation. The accompanying statement and post meeting comments from Fed Chief Jerome Powell are in focus for clarity on future rate hikes.
Benchmark crude oil futures for March delivery rose $0.97 or 1.3 percent at $78.87 a barrel on the New York Mercantile Exchange. Brent crude for April delivery gained $0.46 or 1 percent at $85.46 (Provisional) a barrel on London's Intercontinental Exchange.