Oil falls as traders weigh rate hike, rising U.S. output
BNN Bloomberg
Oil declined as investors weighed the outlook for supply and demand following a big interest-rate hike from the Federal Reserve and rising US crude output.
West Texas Intermediate futures climbed to trade near US$117 a barrel earlier on Thursday. The Fed raised interest rates by 75 basis points as the central bank seeks to combat surging inflation. US crude production rose to 12 million barrels a day last week, the first time at that level since early 2020, according to data from the Energy Information Administration.
Crude is up more than 50 per cent this year following a tightening of energy markets as an economic rebound coincided with upended trade flows after Russia’s invasion of Ukraine. Global supply will struggle to meet rising demand in 2023, the International Energy Agency said in a monthly report on Wednesday.
