Oil prices fall after rate hikes, but tight supply still in focus | Reuters

Oil prices fall after rate hikes, but tight supply still in focus | Reuters

Oil prices erased early gains to fall to two-week lows on Thursday on the back of inflation concerns highlighted by interest rate hikes in the United States, Britain and Switzerland, though tight oil supply limited losses.

Brent crude futures were down $1.02, or 0.9%, to $117.49 a barrel by 1330 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell $1.17 to $114.14, off 1%.

Prices slipped more than 2% overnight after the Federal Reserve raised its key interest rate by 0.75%, the biggest hike since 1994.

On Thursday, European stocks tumbled after a surprise rate hike from Swiss National Bank. This was followed by a rate hike by the Bank of England. read more