Oil steady after surprise dip in U.S. crude stocks offsets demand fears

Oil prices were steady in early trading despite a warning of possible interest rate hikes by the US Federal Reserve, which could dampen oil demand. Brent futures were down 0.1% at $77.04 a barrel and US West Texas Intermediate crude futures had slipped 0.1% to $72.48 per barrel at 0015 GMT. However, prices spiked $1 a barrel in the previous session due to expectations of a drop in biofuel blending due to global crop shortfalls driving up prices for corn and soybeans. US crude oil inventories reportedly fell about 1.2 million barrels last week.