Crude Prices Flat as Possible Rate Hikes Fuel Demand Worries

On Monday crude oil prices were flat, pressured by concerns that more U.S. interest rate increases may dent demand.

U.S. West Texas Intermediate crude was 0.3% or 27 cents, higher at $80.10 per barrel, while Brent crude was at $84.42 per barrel, 6 cents lower after hitting a session high of more than $85 earlier in the session.

Crude posted a second straight week of losses after Fed Chair Jerome Powell on Friday said the central bank might have to hike rates more to ease stubborn inflation further.

BOK Financials senior vice president of trading, Dennis Kissler, said there were still concerns about demand declining especially if there is another hike in interest rates. He added that the market was very nervous.

On Thursday, the Fed's preferred inflation gauge, personal consumption expenditures price index will be released, and on Friday non-farm payrolls data is due.

Although China halved stamp duty on equity trading, Chinese stock markets wiped out most of their strong gains on the opening on persistent concerns about a spluttering economy.

Saxo Bank‘s head of commodity strategy, Ole Hansen, said the oil market was focusing on whether Brent can regain momentum on a break above $85, Tropical Storm Idalia heading for Florida, and China’s actions to support its economy.