Oil prices rose on Wednesday, a day after falling below $100 a barrel for the first time since April, as traders awaited U.S. inflation data that might weigh on the market.

Brent crude futures were up 24 cents, or 0.2%, at $99.73 a barrel. US West Texas Intermediate crude rose 10 cents, or 0.1%, to $95.94.

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Investors have dumped oil holdings, fearing that aggressive interest rate rises to combat inflation may trigger an economic slump, reducing demand for oil. Prices decreased by more than 7% on Tuesday due to turbulent trading.

Another issue is that rising interest rates in the United States in reaction to high inflation may strengthen the currency, hurting oil prices.

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The market was also impacted by renewed COVID-19 travel restrictions in China. In an effort to stop the spread of a highly contagious subvariant of the virus, several cities in the second-largest economy in the world have implemented additional restrictions, ranging from business closures to complete lockdowns.

The dollar index, which monitors the value of the currency against a basket of six rivals, rose earlier in the day to 108.56, its highest level since October 2002.

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Because oil is often priced in US dollars, a higher dollar makes the commodity more costly to holders of other currencies, exerting downward pressure on demand and the dollar price.

For the week ended July 8, oil stockpiles in the United States increased by around 4.8 million barrels. Gasoline stocks increased by 3 million barrels, while distillate stocks increased by roughly 3.3 million barrels, reported Reuters citing American Petroleum Institute figures.

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Additionally, the market is keeping a close eye on US President Joe Biden’s visit to the Middle East, where he is likely to ask Saudi Arabia and other Gulf producers to increase oil supply to help stabilise prices.

OPEC predicted that global oil consumption will grow in 2023 and that the market would remain tight in its monthly report released on Tuesday. It is anticipated that its members will require an extra 900,000 BPD of oil in 2023, up from 2022, to stabilize the market.