Oil prices fall as expected U.S. interest rate hike looms | Reuters

Oil prices fall as expected U.S. interest rate hike looms | Reuters

Oil prices fell on Wednesday on concerns about fuel demand and global economic growth before an expected big hike in interest rates by the U.S. Federal Reserve.

Brent crude futures for August were down $1.27, or 1%, at $119.90 a barrel as of 1001 GMT, in volatile trading.

U.S. West Texas Intermediate crude for July fell $1.44, or 1.2%, to $117.49 a barrel.

"Oil markets are seeing uncertainty over what central banks do next and how that impacts oil demand," said UBS analyst Giovanni Staunovo.

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