Vienna, August 30 (BNA): Oil prices fell on Tuesday, paring some of the gains from the previous session, as the market feared that an increase in interest rates from central banks would slow the global economy and reduce demand for fuel.
Brent crude futures for October were down 81 cents, or 0.7 percent, at $104.28 a barrel by 0359 GMT, after rising 4.1 percent on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday and the most active contract for November was at $102.33, down 0.6%.
US West Texas Intermediate crude was at $96.68 a barrel, down 33 cents, or 0.3%, after rising 4.2% in the previous session.
Inflation is approaching double-digit territory in many of the world’s largest economies, a level not seen in nearly half a century, which could prompt central banks in the United States and Europe to resort to sharper increases in interest rates, according to Reuters.
Analysts from Haitong Futures said, “Risk appetite has declined due to the expectation that the Federal Reserve will continue to raise interest rates… and the decline in natural gas prices in Europe is adding uncertainty to the picture of the energy crisis.”
The agency chief said IEA member states could release more oil from the Strategic Petroleum Reserves (SPR) if they found it necessary when the current scheme expires.
The American Petroleum Institute, an industry group, is due to release data on US crude stocks on Tuesday with the Energy Information Administration, the statistical arm of the US Department of Energy, to follow on Wednesday.
A preliminary Reuters poll on Monday showed that US crude oil stocks likely fell by 600,000 barrels as distillate and gasoline stocks fell.
HF