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Oil price news today - Oil prices fell for a second straight session and headed for a weekly decline of more than 3% on Friday. The decline was caused by higher-than-expected interest rates in the UK and warnings of a rate hike in the US, which fueled concerns about oil demand. Brent crude futures fell 51 cents, or 0.4%, to $ 73.76 a barrel, while US WTI crude fell 42 cents, or 0.6%, to $ 69.09 by 02:40 WIB. Fears of a recession have increased after central banks and the Federal Reserve raised interest rates in a hawkish manner. Tina Teng, an analyst at CMC Markets, said the rise has also led to a stronger dollar, which has a negative impact on prices. A rising dollar, which has strengthened 0.3% so far this week, could hurt demand for crude as it makes fuel more expensive for holders of other currencies. In the previous session, both crude benchmarks fell about $3 after the Bank of England raised interest rates by half a percentage point. The rate hike raised concerns about an economic slowdown that could hurt fuel demand. The market is now awaiting the release of Purchasing Managers Index (PMI) from around the world on Friday to gauge manufacturing activity and demand trends. PMIs are important indicators that can provide insight into the health of the manufacturing sector and the economy as a whole. In the United States, crude stocks fell unexpectedly last week, driven by strong export demand and low imports, the Energy Information Administration said on Thursday. However, gasoline and distillate inventories rose. Federal Reserve Chairman Jerome Powell said that plans to raise interest rates at a “cautious pace” could have a significant impact on a range of sectors, including the oil industry. Higher interest rates would lead to higher borrowing costs for businesses and consumers, which in turn could hurt overall economic growth and reduce oil demand. In this context, energy traders, as noted by Edward Moya, an analyst at OANDA, are concerned that the policy could hamper economic growth in the second half of the year. Uncertainty over the upcoming interest rate policy has created uncertainty about the outlook for fuel demand, including oil, for the rest of the year.
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