consumer confidence in June also led to market concerns that the Federal Reserve would likely have to continue raising interest rates.Īnalysts said that markets have struggled to shake off fears that higher interest rates will weigh on global growth and oil demand. Higher interest rates can weigh on economic activity and oil demand.Ī rise in U.S. On the demand side, European Central Bank President Christine Lagarde said on Tuesday that stubbornly high inflation will require the bank to avoid declaring an end to rate hikes. Gasoline inventories fell by about 2.9 million barrels, compared with estimates for a draw of 126,000. government data on stockpiles is due on Wednesday. Analysts had expected a draw of 1.76 million barrels. "A widening contango at the prompt end and a weakening backwardation along the Brent and WTI forward curves signals growing market perception of oversupply," Hari said.Ĭrude stocks fell by about 2.4 million barrels in the week ended June 23, according to the market sources, citing data from industry group American Petroleum Institute. "The floor is being tested again - whether it holds, remains to be seen."īrent's six-month spread - a price structure in which sooner-loading contracts trade above later-loading ones - was at its lowest in six months.īut the two-month spread was in the opposite price position, called contango. "Tuesday's slump took Brent and WTI close to support levels that have held through the price dives of the past couple of months," said Vandana Hari, founder of oil market analysis provider Vanda Insights. West Texas Intermediate (WTI) futures gained 26 cents, or 0.38%, to $67.96 a barrel.īoth contracts had fallen by about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. ![]() ![]() inventories, signalling robust demand from the world's biggest oil consumer, but the gains were limited by worries over interest rate hikes.īrent crude futures rose 34 cents, or 0.47%, to $72.60 a barrel at 0626 GMT, while U.S. ![]() OIL prices edged higher on Wednesday after industry data showed a larger-than-expected drawdown of U.S.
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