Oil Cools After 3-Day Rally Amid Fed Uncertainty, U.S. inventory Build
Oil prices were muted on Thursday as hawkish comments from Federal Reserve officials supported the dollar and brewed some concerns over more interest rate hikes, while U.S. crude inventories also logged a seventh straight week of builds. Hawkish overnight comments from Federal Reserve officials saw markets reassessing their outlook for U.S. interest rate hikes this year, given that inflation is still trending well above the central bank’s target range. This bolstered the dollar, which in turn weighed on crude markets. The prospect of higher U.S. interest rates also bodes poorly for oil, given that the ensuing slowdown in economic activity could further hamper demand. Fears of a more hawkish Fed were back in play after stronger-than-expected U.S. jobs data rattled crude markets last week. B...