Crude oil prices slip after US interest rate hike; Brent hits $89.67/bbl

Oil prices edged lower in early Asian trade on Thursday after the US Federal Reserve raised interest rates significantly to curb inflation, with fears for the global economy casting a shadow over future fuel demand.

Brent crude futures LCOc1 fell 16 cents, or 0.2%, to $89.67 per barrel by 0013 GMT, while US West Texas Intermediate (WTI) crude CLc1 dropped 15 cents to $82.79 per barrel.

The Fed raised its target interest rate on Wednesday by 75 basis points for the third time, to a 3.00-3.25% range, and signalled more large increases to come. Risk assets like stocks fell on the news, along with oil, while the dollar climbed to a 20-year high against a basket of other currencies, making crude more expensive for buyers not using the greenback. 

Meanwhile US gasoline demand over the past four weeks fell to 8.5 million barrels per day (bpd), its lowest since February, the US Energy Information Administration said on Wednesday.

Elsewhere, Germany nationalised gas importer Uniper on Wednesday and Britain said it would halve energy bills for businesses in response to a deepening supply crisis that has exposed Europe’s reliance on Russian fuel.