Concerns about rising US interest rates cause oil prices to decline

At 0004 GMT, Brent oil futures dropped 27 cents, or 0.3%, to $81.63 a barrel. West Texas Intermediate (WTI) futures for the United States were down 0.5%, or 35 cents, to $77.14.

Thursday saw oil prices decline for the fourth day in a row due to concerns that rising inflation will force the US to raise interest rates once again, which would reduce demand for oil.

At 0004 GMT, Brent oil futures dropped 27 cents, or 0.3%, to $81.63 a barrel. West Texas Intermediate (WTI) futures for the United States were down 0.5%, or 35 cents, to $77.14.

On Wednesday, both benchmarks dropped by more than 1%.

The Federal Reserve's answer to sticky inflation, according to minutes from its most recent policy meeting that were made public on Wednesday, "involves maintaining" its policy rate for the time being while still discussing potential future raises.

"Various participants suggested a willingness to tighten policy further should risks to price increases materialize in a way such a measure like that became appropriate," the minutes of the Federal Reserve's meeting said.

Increased borrowing costs result in cash shortages that may spur economic expansion and increase the demand for oil.

The Energy Information Administration reported that U.S. crude stockpiles increased by 1.8 million barrels last week, contrary to an anticipation of a 2.5 million barrel drop, which also had an impact on the market.

Lately, excess supply and moderate refinery demand have put pressure on the physical crude markets globally.

The Russian Energy Ministry announced late on Wednesday that Russia had surpassed its OPEC+ production limit in April for "technical reasons" and would shortly submit its compensation plan to the Organization of the Petroleum Exporting Countries (OPEC) Secretariat.

When OPEC+ meets on June 1, Citi Research said that it still expects the grouping of OPEC and its allies, headed by Russia, to maintain its output curbs until the third quarter of this year. According to Citi, Brent would likely average $86 a barrel in the second quarter of 2024.