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Oil sharply lower as US rate hike looms

Published 19/05/2016, 13:38
Updated 19/05/2016, 13:38
© Reuters.

© Reuters.

Oil futures were sharply lower on Thursday as fears of a U.S. rate hike in June boosted the dollar and on a rise in U.S. inventories.

U.S. crude futures were down 95 cents or 1.95% at $47.24 a barrel at 0517 ET.

Brent crude futures for July delivery were off 2.25% at $47.84 a barrel.

The minutes of the latest FOMC meeting raised bets that the Fed was set to hike rates in June if the economy so warranted. Two FOMC members are due to speak later Thursday.

A stronger dollar can decrease the attractiveness of commodities to holders of other currencies.

The U.S. Energy Information Administration's weekly supply report on Wednesday showed an unexpected 1.31 million barrel increase in crude inventories last week, highlighting oversupply concerns.

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