Oil slumped as hawkish statements from the Fed and investors await US crude stock data.
Oil tumbled as the Federal Reserve’s governor supported raising interest rates further in the second half of the year and investors awaited crude oil stock data.
US crude for August delivery fell to $72 a barrel after rising Wednesday on signs of recovery in Asian demand.
The Fed Chairman, who will make additional statements on Thursday, warned Wednesday that further rate hikes will likely be necessary to quell inflation.
Official data on U.S. stockpiles are expected after inventories in Cushing, Oklahoma hit a two-year high last week. Prior to that, data from the industry-funded American Petroleum Institute showed that the outlook indicated a nationwide decline, but a small increase in Cushing.
Oil slumped in the first half of the year despite taking steps to support its economy after a disappointing recovery since China, the largest importer of crude, abandoned restrictive zero-Kovid practices.