RIYADH: Oil futures dipped slightly on Thursday, with trader expectations of further interest rate hikes countered by potentially bullish US oil inventory data after preliminary figures showed a fall in stocks.
Brent futures eased by 47 cents, or 0.6 percent, to $76.65 a barrel at 11:40 a.m. Saudi time, while US West Texas Intermediate crude futures were down 44 cents, or 0.6 percent, at $72.09.
The benchmarks had firmed in the previous session as US corn and soybean prices raced to multi-month highs, raising expectations that crop shortfalls could lower biofuel blending and increase oil demand.
However, the market was cautious after US Federal Reserve Chair Jerome Powell said two more interest rate hikes of 25 basis points each by the end of the year was “a pretty good guess.”
Higher interest rates could slow economic growth and reduce oil demand.
Caspian Pipeline Consortium plans $300m investment
The Caspian Pipeline Consortium plans investments of around $300 million in 2023, the Russian government-owned RIA Novosti news agency quoted CPC head Nikolai Gorban as saying on Thursday.
The CPC, which handles around 1 percent of global oil, will spend around $200 million on completing its program of removing bottlenecks, Gorban said.
He added that around $100 million would be allocated for replacing pumps and valves, as well as repair work.
Shell ramping up Olympus Gulf of Mexico oil platform
British oil producer Shell said on Wednesday that its Olympus offshore platform in the Gulf of Mexico was in the process of ramping up production after maintenance.
The Olympus platform was offline for planned overhauls, starting June 7. The offshore hub, along with its Mars and Ursa platforms that underwent turnarounds last year, produce Mars sour crude.
(With input from Reuters)
