12.12.202308:51:00UTC+00Oil Gains As Dollar Eases Ahead Of US Inflation Data

Oil prices were seeing modest gains on Tuesday despite uncertainty about the outlook for energy demand and doubts over OPEC+ supply cuts.

A weaker dollar offered some support ahead of key U.S. inflation data later in the day and Wednesday's FOMC decision.

Geopolitical tensions also returned to the fore after a Houthi attack on a commercial tanker sailing in the Red Sea.

Benchmark Brent crude futures rose 0.4 percent to $76.33 a barrel, while WTI crude futures were up half a percent at $71.63.

The dollar drifted lower as investors awaited U.S. CPI data for November that may show inflation still cooling but staying well above the Fed's 2 percent annual target.

Meanwhile, the Federal Reserve is widely expected to hold rates on Wednesday, with the spotlight squarely on the central bank's dot plot and summary economic projections as well as comments from Chair Jerome Powell during his press conference.

Elsewhere, a ship in the Red Sea has been hit by a missile fired from Houthi-controlled Yemen, a day after the Houthis said they would target every vessel bound for Israel.