Oil Prices Hit $90 per Barrel Amid High Interest and Strong Dollar Rates

Oil prices recovered on Tuesday after witnessing a massive three-week , which was a result of the pressure of the United States dollar and the global economic negative trend. 

Brent crude oil rose by 21 cents to settle at $90.92 a barrel after falling to a session low of $89.50, the lowest since September 8. Last week, Oil prices witnessed a surge as it climbed to $97.

U.S. West Texas Intermediate crude (WTI) rose by 41 cents to settle at $89.23 per barrel.

Prices sank early as the U.S. dollar (.DXY) rose to a 10-month high against a basket of major peers after U.S. job openings data pointed to a still-tight labour market that could prompt the Federal Reserve to raise interest rates next month, Reuters reported.

"We have seen an incredible increase in the yields and the dollar and that's raised concerns about demand going forward," said Phil Flynn, an analyst at Price Futures Group.

Another reason for oil experiencing increases is due to higher interest rates and a stronger dollar which made it very expensive for buyers who held other currencies which further lessened the demand for oil.

On the other hand, some investors kept a watch on the supply updates following the voluntary cut by Saudi Arabia and Russia which is expected to end by the close of the year. So this development by analysts has also affected the price of oil.

The increase in oil prices was also said to be connected to some changes made by central banks to manage inflation.