Oil falls as expected interest rate hikes to impact fuel demand

Shafaq News / Oil prices extended losses on Wednesday on expectations the U.S. Federal Reserve is likely to indicate it will continue to raise interest rates in comments due out later, raising concerns of lower global economic growth and fuel demand.

Brent crude futures for April delivery fell by 23 cents to $82.82 a barrel by 0420 GMT after recording a 1.2% decline on Tuesday. West Texas Intermediate (WTI) crude futures for April declined 21 cents to $76.15 a barrel. The March WTI contract expired on Tuesday down 18 cents.

The U.S. Fed will release the minutes of its latest meeting on Wednesday, which will give traders a glimpse of how high officials are projecting interest rates will go after recent data showed stronger-than-expected U.S. employment and consumer prices.

Higher interest rates tend to lift the dollar, making dollar-denominated oil more expensive for holders of other currencies.

Other economic reports from the U.S., the world's biggest oil consumer, showed some troubling signs however. Sales of existing homes fell in January to their lowest since October 2010, the 12th monthly drop, which is the longest streak since 1999.

(Reuters)