Oil higher on large US stock draws, but rate hike fears linger
Brent crude futures rose 34 cents, or 0.47%, to $72.60 a barrel at 0626 GMT, while U.S. West Texas Intermediate futures gained 26 cents, or 0.38%, to $67.96 a barrel.
Brent's six-month spread - a price structure in which sooner-loading contracts trade above later-loading ones - was at its lowest in six months."A widening contango at the prompt end and a weakening backwardation along the Brent and WTI forward curves signals growing market perception of oversupply," Hari said.
On the demand side, European Central Bank President Christine Lagarde said on Tuesday that stubbornly high inflation will require the bank to avoid declaring an end to rate hikes. Higher interest rates can weigh on economic activity and oil demand. "However, we continue to expect the market to tighten in second-half 2023 on the back of Saudi supply cuts effective from July with upside risk to prices from current levels," analysts at National Australia Bank commodity research said in a note.
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