Oil settled down 1% on renewed worries over interest rates
International benchmarks for crude oil trickled down 1% at the start of the week, 10 July 2023, influenced by pending interest rate hikes in the US
International benchmarks for crude oil trickled down 1% at the start of the week, 10 July 2023, influenced by pending interest rate hikes in the US but limited by supply cuts from top oil exporters Saudi Arabia and Russia.
The latest job data from the US showed a slight drop in unemployment rates along with strong wage growth, fueling speculations that the Federal Reserve might lift key interest rates later this month.
Rising interest rates could erode demand rapidly. However, the reductions were capped on a tight market outlook as OPEC+ slashed production outputs while oil demand from China and developing countries remained steady.
Brent crude dropped 78 cents or 1% at $77.69/barrel.
US West Texas Intermediate fell 87 cents or 1.2% concluding at $72.99/barrel.