Oil edges higher in thin Asian trade amid rate hike concerns

Oil prices rose slightly in thin Asian trade on Thursday, with WTI pausing from a six-day losing streak fed by mounting concerns that more aggressive interest rate increases by central banks could pressure economic growth and fuel demand.

Brent crude futures rose 2c to $80.62 a barrel by 1.10am GMT. West Texas Intermediate (WTI) crude futures rose 9c, or 0.1%, to $74.04 a barrel.

Minutes from the latest US Federal Reserve meeting showed that a majority of Fed officials agreed the risks of high inflation remained a key factor shaping monetary policy and warranted continued rate hikes until it was controlled.

Oil has also been pressured by signs of further crude inventory builds.

US crude oil and fuel inventories rose by 9.9-million barrels last week, according to market sources citing American Petroleum Institute (API) figures on Wednesday.

US oil inventories have climbed every week since mid-December, stoking investor worries about demand.

A Reuters poll had forecast a 2.1-million barrel increase in crude stockpiles last week. Official data from the US Energy Information Administration (EIA) is due on Thursday at 4pm GMT. 

Reuters