Oil dips on demand worries as more rate hikes likely

Oil prices declined for the week amid concerns that interest rate hikes would reduce demand, despite signs of tighter supplies, including a drop in US crude stocks. The Bank of England’s higher-than-expected interest rate rise, along with similar moves in Norway and Switzerland, triggered fund liquidation and cold feet among energy producers. A stronger US dollar, which increased due to risk aversion among investors, also put pressure on oil prices. Although US inventory figures showed a surprise decline, U.S. business activity sank to a three-month low, highlighting potential for an economic downturn, while China’s economy faltered.