Oil steadies as Fed rate hike weighed against tighter market
BNN Bloomberg
Oil steadied after four weekly gains as traders weighed prospects for another hike from the Federal Reserve against signs of a tighter market.
Brent crude traded little changed near US$81 a barrel in London, having gained roughly 10 per cent since late June. Prices have strengthened as Saudi Arabia and its partners in OPEC+ cut supplies. International Energy Agency Executive Director Fatih Birol said over the weekend that the market could return to a supply deficit.
U.S. central bank policymakers are widely expected to deliver another rate increase at this week's meeting in their push to rein in inflation and give guidance on the likelihood of additional moves. The tightening cycle risks tipping the world's largest economy into recession, potentially harming demand.
