Oil prices climb, but expected U.S. interest rate hike looms | Reuters

Oil prices climb, but expected U.S. interest rate hike looms | Reuters

Oil prices rose on Wednesday, rebounding from losses earlier in the session amid concerns over fuel demand and the broader economy ahead of an expected big hike in interest rates by the U.S. Federal Reserve.

In a volatile session, Brent crude futures for August were up 46 cents, or 0.4%, at $121.63 a barrel as of 0642 GMT after falling to as low as $120.65 earlier in the session on the back of a 0.9% decline on Tuesday.

U.S. West Texas Intermediate crude for July rose 41 cents, or 0.3%, to $119.34 a barrel, after hitting a low of $118.22 earlier in the day, having dropped 1.7% a day earlier.

Surging inflation has led investors and oil traders to brace for a big move by the Fed this week - a 75-basis-point increase, which would be the largest U.S. interest rate hike in 28 years. read more