Oil fell nearly 1% on concerns over US gasoline demand and economic data

Oil prices fell about 60 cents on Wednesday, 29 May 2024 due to concerns about weak US gasoline demand and economic data that may prompt the Federal Reserve to maintain higher interest rates for an extended period. Elevated interest rates aimed at curbing persistent inflation can hinder economic growth and diminish oil demand.

In May, US consumer confidence unexpectedly rose after three months of decline, driven by optimism about the labour market. However, inflation worries continued, with many households anticipating higher interest rates in the coming year.

Brent futures decreased 62 cents or 0.7%, settling at $83.60/barrel.

WTI fell 60 cents or 0.8%, settling at $79.23/barrel.