Oil prices dipped on Wednesday, driven down by concerns that US interest rates would remain higher for longer and that economic growth in top crude importer China may stall further, reducing fuel consumption.
According to “Reuters,” both benchmarks dropped approximately 0.5%.
Markets are expecting policymakers to provide signals on the future of interest rates when they convene in Jackson Hole, Wyoming, later this week for the annual central bank conference.
Oil stockpiles in the United States fell by approximately 2.4 million barrels in the week ending Aug. 18, according to market sources citing American Petroleum Institute estimates on Tuesday.
China, the world’s second-largest economy, is seen as critical to maintaining oil demand for the rest of the year. Its poor growth has angered markets as promised stimulus has fallen short of expectations, including a smaller-than-expected cut in a key lending benchmark on Monday.
