Oil prices have fallen for the fourth consecutive day as the prospect of additional interest rate hikes by the U.S. Federal Reserve emerges. Brent crude futures were up slightly at $82.00 per barrel, while West Texas Intermediate (WTI) crude futures rose to $77.64 per barrel.
The minutes from the latest Federal Reserve policy meeting revealed discussions about the potential to raise interest rates further if inflation remains stubborn. Higher interest rates can hurt economic growth and oil demand in the world’s largest oil-consuming nation, the United States.
Globally, physical crude markets have been under pressure due to soft refinery demand and ample supply. U.S. crude stocks rose by 1.8 million barrels last week, contrary to the estimated draw of 2.5 million barrels.
Russia also reported that it exceeded its OPEC+ production quota in April due to “technical reasons” and will soon present a plan to the OPEC Secretariat to compensate for the error. OPEC+ is set to meet on June 1 to decide on production cut levels, but analysts believe the best the cartel can do is a rollover of current voluntary cuts, which may not be enough to support the market’s confidence.