16 June 2022

Oil Prices Rise after US Interest Rate Hike

International and Arabic
  • Oilup

Singapore, June 16 (QNA) - Oil prices rose Thursday, recovering from a sharp decline in the previous session, supported by reduced supplies and the demand for the peak summer season, after a US rate hike sparked fears of slower economic growth and less fuel demand.
Brent crude futures rose $1.10, or 0.9 percent, to $119.61 a barrel, while West Texas Intermediate crude futures rose $1.28, or 1.1 percent, to $116.59 a barrel.
Prices fell by more than 2 percent on Wednesday after the Federal Reserve (the US central bank) raised interest rates by three-quarters of a percentage point, the biggest hike since 1994.
The dollar index fell from its highest since 2002 yesterday, easing pressures on oil prices. The rise of the dollar makes oil more expensive for holders of other currencies and limits demand.
Data from the Energy Information Administration revealed that US crude production, which has not changed much in the past months, increased by 100,000 barrels per day last week to 12 million barrels per day, the highest level since April 2020. (QNA)

Keywords

Economy, International
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