Oil slips as dollar firms, but supply worries check losses

Oil futures fell early on Thursday as the dollar firmed on the Federal Reserve’s hawkish stance, but concerns over looming supply risks kept a floor under prices.

Brent crude shed 44 cents, or 0.5 per cent, to $95.72 a barrel, while US West Texas Intermediate (WTI) crude futures retreated 59 cents, or 0.7 per cent, to $89.41.

The benchmarks settled up more than $1 on Wednesday, aided by another drop in US oil inventories, even as the Fed boosted interest rates by 75 basis points and Chair Jerome Powell said it was premature to think about pausing rate increases.