Oil prices below $100 ahead of possible large US rate hike

By Murat Temizer

ANKARA (AA) – Oil prices were steady on Thursday following signals of a significant rate hike in the US, with gains limited by a US supply report indicating rising inventories.

International benchmark Brent crude was trading at $99.57 per barrel at 9.20 a.m. local time (0620GMT), unchanged from the previous session’s close.

American benchmark West Texas Intermediate (WTI) was also at the same level as Wednesday’s close, trading at $96.31 per barrel.

US stocks opened lower on Wednesday after Labor Department data showed annual consumer inflation rose 9.1% in June, higher than the 8.8% estimate.

Surging inflation could trigger more aggressive moves by the Federal Reserve, as the US central bank could go for an interest rate hike of 100 basis points on July 27, higher than the increase of 75 basis points expected before Wednesday’s inflation data was released.

Market players are also keeping a close eye on US President Joe Biden’s ongoing trip to the Middle East, where he is expected to press Saudi Arabia and other Gulf producers to boost oil supplies for greater price stability.

In its July Short-Term Energy Outlook, the Energy Information Administration said markets are facing heightened uncertainty due to a raft of factors, including Russia’s ongoing war on Ukraine.​​​​​​​