Despite concerns over Chinese demand, oil prices jumped on Tuesday thanks to a lower currency and anticipation that Fed could loosen its strict policy following a significant US inflation report this week.

Brent crude edge up by 0.8% to $84.83 per barrel, while WTI futures inched up by 1.2% to $80.66 per barrel. The two main gauges added around $1.

On expectations that the U.S. Federal Reserve will soon stop raising interest rates, the dollar fell, making oil purchased in dollars more affordable for buyers using foreign currencies.

Investors will likely be able to determine the near-term direction of interest rates with the help of a U.S. inflation data that will be released tomorrow.

Yet, data from China indicated that consumer inflation increased in March at its weakest rate since September 2021, indicating that demand weakness is still present in an uneven economic recovery.

Oil futures have inched over 5% after OPEC+ stunned the market last week with additional production trims from May.