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To
fight inflation, the U.S. Federal Reserve is trying to slow the
economy and will keep raising its short-term rate target,
Federal Reserve Bank of Philadelphia President Patrick Harker
said on Thursday.
Brent crude was up 3 cents to $92.41 a barrel by 1041 GMT. U.S.
West Texas Intermediate crude was down by 23 cents, or 0.3%, to
$84.28.
"With several key Fed members taking turns at the hawk's pulpit
this week arguing for even higher interest rates, it blunted
optimism from China's reduced quarantine hopes," Stephen Innes,
managing director at SPI Asset Management, said in a note.
"Everyone is pining for a China-reopening-driven commodity
boost, but we are not there yet."
Brent, which came close to its all-time high of $147 a barrel in
March, is on track for a weekly gain of less than 1%, while U.S.
crude was set to fall over 1.5%. Both benchmarks dropped in the
previous week.
Oil gained a lift on Thursday after Bloomberg news reported that
Beijing was considering cutting the quarantine period for
visitors to seven days from 10 days. There has been no official
confirmation from Beijing.
"The knee-jerk price action provided a useful glimpse of what to
expect once more punitive restrictions are lifted," said Stephen
Brennock of oil broker PVM, of the market's rally after the
report.
China, the world's largest crude importer, has stuck to strict
COVID-19 curbs this year, weighing heavily on business and
economic activity and lowering demand for fuel.
Oil gained support from a looming European Union ban on Russian
oil, as well as the output cut agreed earlier this month by the
Organization of the Petroleum Exporting Countries and allies
including Russia, known as OPEC+.
(Additional reporting by Florence Tan and Emily Chow in
Singapore; Editing by Elaine Hardcastle and Mark Potter)
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