2023-06-23 21:07:06
Oil pump
Oil prices fell at the settlement, on Friday, recording a weekly loss, as investors worried that raising interest rates may lead to a decline in demand for oil, despite signs of declining supplies, including a decline in US crude oil inventories.
price movements
Brent crude fell 29 cents, or 0.4 percent, to settle at $73.85 a barrel, recording a loss for the second day in a row.
West Texas Intermediate crude fell 35 cents, or 0.5 percent, to $69.16.
On Thursday, Brent crude lost nearly $3 a barrel following the Bank of England raised interest rates by half a percentage point more than expected.
The central banks of Norway and Switzerland also raised interest rates.
Both benchmarks fell more than 3.5 percent for the week.
And the possibility of raising interest rates once more in the United States has become more likely.
San Francisco Fed President Mary Daley said the expectation of two more rate hikes this year is “very reasonable.”
Investors’ aversion to risk also boosted the value of the dollar, putting pressure on oil prices by making them higher for holders of other currencies.
The US inventories report for this week showed a sudden decline of 3.8 million barrels in crude oil inventories.
It is also expected that the market will witness a decrease in supply following Saudi Arabia cut its production by one million barrels per day in July, which was announced by the Kingdom in addition to the OPEC + alliance agreement to limit supplies until 2024.
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