Oil prices fell for the fourth straight session on Thursday, as the prospect of higher-for-longer U.S. interest rates prompted concerns about demand growth in the world’s largest oil market.
Brent Crude Oil
Brent crude oil futures were down 45 cents, or 0.6%, to $81.45 a barrel by 11:50 a.m. ET (1550 GMT). U.S. West Texas Intermediate (WTI) oil futures were down 57 cents, or 0.7%, at $77 per barrel.
S&P Global data
S&P Global data showed that U.S. business activity accelerated this month.
But manufacturers also reported an increase in costs for a variety of inputs, implying that goods inflation may rise in the coming months.
Most recent Policy Meeting
Minutes from the most recent policy meeting of the United States Federal Reserve were released on Wednesday.
Indicating that policymakers are still unsure whether current interest rates are high enough to contain stubborn inflation. High interest rates raise the cost of borrowing, which can hinder economic growth and reduce demand for oil.
Energy Information Administration
Also impacting on the market, the Energy Information Administration said that U.S. oil stockpiles increased by 1.8 million barrels last week, compared to an expected drop of 2.5 million barrels.
However, the EIA stated that U.S. petrol consumption was at its highest level since November, offering some support to energy markets.
“It was a pretty good report for gasoline, everything pretty much hit the positive side of the ledger,” Mizuho analyst Bob Yawger said.
“However, one report does not make a trend, so everyone will be watching if it can continue to perform going forward.”
Investors are also anticipating an impending June 1 meeting of the Organisation of Petroleum Exporting Countries and its partners, known as OPEC+, where the group will decide on output policy.
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