Oil was little changed on Wednesday after hitting five-week lows in the previous session, as investors priced in expectations for interest rate hikes in the U.S. and Europe and waited for clarity on future policy path.
Brent futures gained 3 cents, or 0.1%, to $75.35 a barrel by 0333 GMT, while West Texas Intermediate crude (WTI) edged down 3 cents at $71.63. Both benchmarks closed at their lowest since March 24 in the previous session, when they also recorded their biggest one-day percentage declines since early January.
“Sentiment in the oil market remains negative,” Warren Patterson and Ewa Manthey, analysts from ING, said in a note to clients. “Investors seem to be getting increasingly nervous about the macro-outlook and its implications for oil demand.”
The U.S. Federal Reserve is expected to hike interest rates by an additional 25 basis points on Wednesday to combat inflation, while the European Central Bank is also expected to raise rates at its regular policy meeting on Thursday. More hikes could slow economic growth and hit energy demand. Source: Reuters
