He Crude oil down for the second day in a row and headed for a weekly decline, as gains interest rate in Rgreat Britainone of adding to concerns about economic growth, which outweighs the decline in crude oil reserves in United States of America and other signs of further supply shortages.

​Both benchmarks lost around $3 yesterday, after british bank raised rates by half a percentage point, higher than expected. The central banks of Norway and Switzerland also raised interest rates.

Raw ones Brent fell 91 cents, or 1.2 percent, to $73.23 a barrel West Texas Intermediate in the United States (WTI) minus $1.22, or 1.8 percent, from $68.29.

“Following yesterday’s actions by the central bank, the anxiety is growing,” he said. tamas vargofrom brokers MVP. “Due to strengthening economic headwinds caused by recession fears, only a marked depletion of supplies would suggest a protracted turnaround in the currently ominous outlook.”

Rising interest rates are driving up borrowing costs for businesses and consumers, which could slow economic growth and cloud the outlook for oil demand for the rest of the year.

Prospects for further rate hikes in United States of Americas added to the headwind. President of federal Reserves, Jerome Powellsaid this week that two hikes apiece of more than 25 basis points by the end of the year were “pretty good guesses.”

They also considered resurrection dollar, supported by hawkish comments from global central banks. A strong greenback makes oil more expensive for holders of other currencies and could affect demand and signal greater risk aversion among investors.

Concerns about a recession and demand outweigh signs of tight supply. This week, US crude oil inventories posted an unexpected decline of 3.8 million barrels.

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