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Oil prices rise with anticipation of less aggressive US rate hike

Oil prices increased on Friday as the Federal Reserve showed signs of a less aggressive rate hike.

International benchmark Brent crude was trading at $99.92 per barrel at 9.17 a.m. local time (0617 GMT) an increase of %0.82 from the previous session’s closing.

American benchmark West Texas Intermediate (WTI) was also at the same level of Wednesday’s closing, trading at $96.33 per barrel.

Annual consumer inflation rose 9.1% in June, while producer prices increased 11.3% last month on an annual basis.

The recent climb in inflation figures has triggered worries that the Fed could make a rate hike of 100 basis points at the conclusion of its two-day meeting on July 27.

However, US Federal Reserve Governor Christopher Waller said Thursday he supports another interest rate hike of 75 basis points later this month.

As part of a Middle East tour, President Joe Biden is due to arrive in Saudi Arabia on Friday. This is coming just days after data revealed that US inflation jumped to a four-decade high last month, largely due to energy costs.

Source: Anadolu Agency