Crude oil prices: Brent slips on rate hike worries, WTI up on release of US inventories data

Crude oil prices were mixed during the early hours of trade on Friday, June 21, amid worries over interest rate hike and the dwindling of US crude stockpile.

Global crude benchmark Brent slipped 17 cents or 0.2%, but remained above the $85 per barrel mark. The Brent futures for August delivery were trading at $85.54 at 0300 hours GMT.

The dip, claim analysts, could have been triggered by the data released by Japan which showed core consumer prices rising 2.5% year-on-year in May. This provides an impetus to the country's central bank to raise lending rates in the upcoming monetary policy review meetings, they said.

The Bank of Japan held the benchmark lending rate steady at 0.1% on June 13, but hinted at a likely increase in the next couple of months.

An increase in the lending rate by Japan may discourage the US Federal Reserve and other central banks from expediting their rate cut plans, experts said.

A higher interest rate usually leads to moderation of demand, and this, in turn, will adversely affect the oil market which has been battling geopolitical jitters.

US oil inventories data out

The US Energy Information Administration released data on Thursday that showed the US crude stockpile dropping by 2.5 million barrels to 457.1 million barrels in the week ended June 14.

The decline was sharper than a drawback of 2.2 million barrels estimated in a Reuters poll of analysts.

The dwindling of crude stock led to the U.S. West Texas Intermediate (WTI) rising in early trade. It was up 60 cents or 0.74% to cross $82 per barrel-mark. At 0300 hours GMT, the WTI futures for August delivery were priced at $82.17 a barrel.