Oil Stability Amid Concerns of Interest Rate Hikes

Oil prices showed little change on Friday as they are set for weekly gains, with fears of U.S. interest rate hikes, which could reduce energy demand, countered by signs of supply contraction following a larger-than-expected drop in U.S. crude inventories. As of 00:06 GMT, Brent crude futures fell by one cent to $76.51 per barrel, while West Texas Intermediate (WTI) rose by two cents to $71.82 per barrel. Both crude types are expected to rise by about two percent for the second consecutive week. The U.S. Energy Information Administration reported yesterday that crude stocks in the United States fell more than expected, while gasoline inventories saw a significant decline after an increase in driving rates last week. However, expectations of the Federal Reserve (U.S. central bank) raising interest rates at its meeting on July 25 and 26 are pressuring oil prices. Data released yesterday indicated that the number of Americans filing new claims for unemployment benefits saw a moderate increase last week, while private sector jobs surged in June, raising the likelihood of an interest rate hike by the Federal Reserve this month.