Crude oil slumps on demand concerns amid rising rates offset supply cuts
Oil slipped on Friday as a weaker economic outlook and the prospect of further interest rate hikes dogged sentiment, outweighing a tighter market in the second half of the year owing to higher Chinese demand and OPEC+ supply cuts.
The Bank of England is set to raise interest rates by a quarter of a percentage point next week. The European Central Bank lifted rates to a 22-year high on Thursday and the U.S. Federal Reserve signalled at least a half of a percentage point increase by year-end.
“Concerns about demand continue to predominate on the oil market,” Commerzbank analysts said in a report on Friday.
