Benchmark crude oil prices are declining Friday morning after a significant increase a day earlier.
Traders are worried about the likelihood of further rate hikes by the Federal Reserve and the European Central Bank, which could have a negative impact on fuel demand.
Brent crude futures for August delivery on London’s ICE Futures Exchange stood at $75.49 per barrel as of 7:57 a.m., down $0.18 (0.2%) from the close of the previous session. Those contracts rose $2.47 (3.4%) to $75.67 a barrel on Thursday.
The price of WTI futures for July crude oil on the electronic trades of the New York Mercantile Exchange (NYMEX) fell on Friday morning by $0.16 (0.2%) to $70.46 per barrel. The contract value rose by $2.35 (3%) to $70.62 a barrel at the end of previous session.
The Fed’s management decided Wednesday not to change the prime rate range (5-5.25% per year), but signaled the likelihood of further increases this year to curb consumer price growth.
The ECB, as forecasted, raised all three key interest rates by 25 basis points at the end of Thursday’s meeting – to the highest levels in 22 years. At the same time, Bank President Christine Lagarde said that the set goals in the fight against inflation have not yet been achieved. According to her, the central bank is “very likely” to raise rates again in July.
