Oil Prices Fall Amid Fears of US Inflation

Oil prices fell on Friday as rising inflation in the United States stoked fears of a major interest rate hike as investors awaited the outcome of nuclear talks between the United States and Iran that could increase the global supply of crude.

Brent crude futures were down 58 cents, or 0.6 percent, at $90.83 a barrel, while West Texas Intermediate crude was down 45 cents, or 0.5 percent, at $89.43 a barrel.

Oil prices are also heading for their first weekly decline after posting gains for seven consecutive weeks, even though both Brent and US crude rose earlier to their highest level in seven years.

The Organization of the Petroleum Exporting Countries (OPEC) said global oil demand could rise further this year. OPEC expects an increase in demand of up to 4.15 million barrels per day this year, as the global economy records a strong recovery from the pandemic.