Oil slips further on US demand, interest rate fears

Oil prices have been declining since the beginning of the year due to a combination of factors such as slowing global economic growth and rising U.S. crude production. On Thursday, the price of Brent crude futures fell by 14 cents or 0.2%, reaching a low of $63.58 per barrel. This decline was mainly driven by news that the United States had added more oil to its stockpiles than expected in the week ending February 22nd, according to data from the U.S. Energy Information Administration (EIA).

The buildup in crude inventories is a sign of weakening demand for oil, as it indicates that there is an excess supply of oil in the market. This has caused concerns among investors about the sustainability of the global oil market and the ability of OPEC and other oil-producing countries to maintain production cuts aimed at supporting prices.

Additionally, signs that U.S. interest rates could remain elevated have also contributed to the decline in oil prices. The Federal Reserve has indicated that it may keep interest rates on hold for longer than expected, which would make borrowing more expensive for businesses and consumers, potentially slowing economic growth and reducing demand for oil.

Overall, the combination of weakening global demand and rising U.S. production, along with concerns about interest rates, has led to a decline in oil prices on Thursday.