Brent Crude: Oil wobbled below $100 per barrel on Thursday, as hotter than expected US inflation data raised the prospect of more aggressive Federal Reserve tightening, escalating fears of a demand-sapping recession and overshadowing concerns over tight supply.
Markets are factoring in the possibility of a supersized 100 basis point rate hike from the Fed this month as US inflation surged to a fresh 40-year high in June. EIA data also highlighted weakening US demand with product supplied falling to 18.7 million barrels per day, the lowest since June 2021.
Moreover, latest data showed China’s daily crude imports in June sank to their lowest since July 2018 as refiners anticipated a hit from lockdown measures, according to Reuters.
Meanwhile, US President Joe Biden is set to attend a summit of Gulf allies in Saudi Arabia on Friday where he is expected to call for increased oil production amid efforts to bring down prices.
