Oil prices extended losses on Thursday, with WTI crude futures sinking more than 4% to approach $69 a barrel, as hawkish messages from major central banks raised concerns that interest rates will continue to march higher for longer, thus impacting demand even more. Fed Chair told the US Congress that further rate hikes will be necessary, while the Bank of England and the Norges Bank increased interest rates by more than most analysts expected. The Swiss National Bank also continued to tighten. Meanwhile, EIA data showed crude inventories in the US unexpectedly fell by 3.8 million barrels in the last week, compared to forecasts of a 0.33 million-barrel rise while stocks at the Cushing, Oklahoma, delivery hub declined by 98,000 barrels. Analysts also noted muted increases in US oil output and production cuts by OPEC+ that could limit crude supply in the coming months and lift oil prices.
