Oil prices continue to decline, with investors doubling their bets on the US Central Bank raising interest rates, which would control inflation and reduce demand for oil.
West Texas Intermediate crude futures for August delivery were traded at $95.93 a barrel, down 37 cents, or 0.4%, after an increase of 46 cents in the previous session.
The US Federal Reserve is ramping up its efforts to curb inflation, which has hit a 40-year high, by raising interest rates by 100 basis points unexpectedly this month after a disappointing inflation report showed price pressures are accelerating.
Yesterday, Wednesday, the Bank of Canada raised the base interest rate by 100 basis points, with the aim of controlling inflation, to surprise Canada, becoming the first country in the Group of Seven to raise the interest rate by this large amount.
On Wednesday, Bloomberg Agency reported, citing a draft forecast, that the European Commission expects record-high levels of inflation and lowered its forecast for GDP for 2022 and 2023 due to the war in Ukraine and a decline in demand due to high prices and the risks of energy shortages in the winter.
