Oil prices continued to slide due to concerns about global demand, following a higher-than-expected interest rate hike in the UK and warnings of future rate increases in the US.
Brent futures dropped by 51 cents, or 0.4%, settling at $73.76 per barrel, while US West Texas Intermediate (WTI) crude futures fell by 42 cents, or 0.6%, reaching $69.09 per barrel.
The Bank of England’s decision to raise interest rates by half a percentage point raised fears of an economic slowdown that could impact fuel demand.
Additionally, a stronger US dollar, which rose 0.3% during the week, can lead to reduced oil demand by increasing the cost for holders of other currencies. Oil traders are closely monitoring the release of Purchasing Managers Indexes (PMIs) to assess manufacturing activity and demand trends worldwide.
Concerns about potential interest rate hikes by major central banks have added uncertainty to the fuel demand outlook for the remainder of the year, as higher interest rates raise borrowing costs for businesses and consumers, potentially slowing economic growth and reducing oil demand.
