From Ahmed Ghaddar
LONDON (Reuters) – Crude prices steadied on Thursday, a day after a sharp rise following a larger-than-expected drop in US stockpiles, as attention returned to rising interest rates, weighing on global economic growth.
* By 1032 GMT, crude oil futures rose 10 cents, or 0.1%, to $74.13 a barrel, while US currency futures (WTI) rose 11 cents, or 0.2%, to $74.13 a barrel.
The two benchmarks rose nearly 3 percent on Wednesday after the Energy Information Administration said crude inventories fell by 9.6 million barrels in the week ending June 23, far exceeding the 1.8 million-barrel drawdown expected by analysts in a Reuters poll.
* Concerns about the impact of an interest rate hike on economic growth have returned to the fore, slowing progress.
The leaders of the world’s major central banks affirmed yesterday that they believe further monetary policy tightening is needed to rein in high inflation, but they still believe they can do so without triggering an outright recession.
– Federal Reserve Chairman Jerome Powell did not rule out further increases at the next central bank meeting, while European Central Bank President Christine Lagarde reinforced expectations of a ninth consecutive interest rate hike in the eurozone in July.
In the face of lower prices, Saudi Arabia pledged this month to reduce its production in July, joining a broader OPEC + agreement to limit supplies until 2024.
(Reporting by Yuka Obayashi (TYO: Spanish editing by Carlos Serrano)
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