Oil Edges Lower With US Rates Outlook and Stockpiles in Focus

(Bloomberg) -- Oil edged lower as the head of the US central bank lined up behind raising interest rates further in the second half, and traders looked ahead to key crude stockpiles data.

West Texas Intermediate for August fell toward $72 a barrel after jumping on Wednesday on signs of a pick-up in Asian demand. Federal Reserve Chair Jerome Powell, who will deliver additional remarks on Thursday, warned yesterday that further rate hikes were likely warranted to quell inflation.

Official prints on US stockpiles are due later after holdings at the key hub in Cushing, Oklahoma, hit a two-year high last week. Ahead of that snapshot, people familiar with data from the industry-funded American Petroleum Institute said its outlook pointed to a drop nationwide, but small rise at Cushing.

Oil has declined this half even as China, the world’s largest crude importer, has taken steps to shore up its economy after a disappointing recovery since ditching its restrictive Covid Zero stance. To try to arrest the slide the Organization of Petroleum Exporting Countries and its allies has agreed to curb production.

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