By Katya Golubkova
TOKYO, April 20 (Reuters) - Oil prices fell on Thursday
as muted U.S. economic data and expectations of interest rate
hikes pushed up the U.S. dollar, prompting fear of a stronger
dollar hurting global oil demand by making it more expensive.
Brent futures for June delivery were down by 37
cents, or 0.4%, at $82.76 a barrel. West Texas Intermediate
crude (WTI) for May delivery lost 28 cents, or 0.35%, to
trade at $78.88 at 0005 GMT.
U.S. economic activity was little changed in recent weeks
as employment growth moderated somewhat and price increases
appeared to slow, showed a Federal Reserve report published on
Wednesday.
"This unsettled markets, magnifying recent concerns that
monetary tightening has weakened demand for oil. A stronger U.S.
dollar also weighed on investor appetite. The market shrugged
off a relatively bullish EIA inventory report," ANZ Research
said in a client note.
U.S. crude stockpiles fell by 4.6 million barrels last week
as refinery runs and exports rose, while gasoline inventories
jumped unexpectedly on disappointing demand, according to the
U.S. Energy Information Administration (EIA). The crude stockpile decline was far steeper than analysts'
estimate of 1.1 million barrels, and the American Petroleum
Institute's estimates late on Tuesday of 2.7 million barrels.
On the supply side, oil loading from Russia's western ports
in April are likely to rise to the highest since 2019, above 2.4
million barrels per day, despite Moscow's pledge to cut output,
trading and shipping sources said.
On Wednesday, oil prices slid about 2% to a two-week low
despite the sharp decline in U.S. crude inventories, as the
dollar strengthened on fear that looming Fed rate hikes could
curb energy demand in the world's biggest consumer.
"WTI crude is back below the $80 level and it could continue
drifting lower if the strong dollar trade resumes," Edward Moya,
senior market analyst at OANDA, said in a client note.
(Reporting by Katya Golubkova; Editing by Christopher Cushing)
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