Oil prices fell as potential U.S. interest rate hikes could slow growth

Oil prices retreated as a potential U.S. interest rate hike, which could slow growth and pause oil consumption, weighed on strong economic data from China.

Brent crude futures were down $1.83, or 2.23%, at $82.94 a barrel, while West Texas Intermediate was down $1.83.

The U.S. Federal Reserve is likely to make another interest rate hike.

Markets are pricing in an 86% chance the Fed will increase rates by 25 basis points at its May policy meeting.

European Central Bank officials in Europe are also wary of inflation and expect interest rates to remain on hold.

Big oil importer, China’s economy, grew at a faster-than-expected 4.5% pace in the first quarter, and the country’s refinery capacity rose to a record high in March.

U.S. crude oil prices fell by about 2.67 million barrels last week. Gasoline and distillate inventories were also down last week.

Asian refiners continued to pump Russian crude in April amid heavy pressure on oil benchmarks.

On April 12, after a four-month delay, three gas tankers departed, each carrying butane and propane, and traversed the Crimea bridge constructed by Russia on their way to their destination. This could mean that the Russian terminal in Temryuk, on the coast of the Sea of Azov, is ready to resume exports of liquefied petroleum gas.

In October, President Vladimir Putin’s 12-mile road and rail bridge opened in 2018, was the target of a bombing attack.

Tankers usually take up to a week to deliver LPG cargo from Temriuk to the Romanian ports of Midia and Mangalia or the Bulgarian port of Burgas.