Oil falls on interest-rate hike concerns

Oil prices fell today, June 26, hurt by concerns about potential interest-rate hikes which may impact economic growth and oil demand.

Brent crude for August delivery fell 0.4%, or $0.27, to $73.76 a barrel at 0052 GMT.

Meanwhile, WTI contracts for August inched lower 0.3%, or $0.21, to $69.35 a barrel.

“The market turned around on renewed worries about further rate hikes in the U.S. and Europe, which will reduce global oil demand,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

Leaders of the world’s top central banks reaffirmed on Wednesday they think further policy tightening will be needed to tame stubbornly high inflation but still believe they can achieve that without triggering outright recessions.

The US Federal Reserve Chair Jerome Powell did not rule out further hikes at the central bank’s next meeting while European Central Bank President Christine Lagarde cemented expectations for a ninth consecutive rise in euro zone rates in July.

Adding to pressure, annual profits at industrial firms in China, the world’s second-biggest oil consumer, extended a double-digit decline in the first five months as softening demand squeezed margins.