Oil prices fell more than 2% on Tuesday; Amid indications that central banks will continue the path of raising interest rates, while investors await data on Americans’ fuel consumption during the summer season, when driving reaches its highest levels.
Brent crude futures fell $1.92, or 2.6%, to $72.26 a barrel at settlement, while US West Texas Intermediate crude futures fell $1.67, or 2.4%, to $67.70 a barrel.
Analyst Craig Erlam of OANDA said prices were mainly affected by “the ever-changing expectations of interest rates”.
European Central Bank President Christine Lagarde said on Tuesday that a sharp rise in inflation will require the bank to continue raising interest rates. Higher interest rates could affect economic activity and demand for oil.
The US consumer confidence index rose in June to the highest level in nearly a year and a half amid optimism about the labor market.
The American Petroleum Institute is due to release data on US stockpiles later in the day, followed by government data on Wednesday. A Reuters poll indicated that US inventories may have declined in the week ending June 23.
Reuters
2023-06-27 20:30:55
#Oil #prices #drop
