Oil prices fell for a fourth straight session on Thursday and closed at monthly lows as the prospect of higher long-term US interest rates raised concerns about demand growth in global markets.
Brent crude closed 54 cents (0.7%) lower at $81.36 a barrel, its lowest since January. Meanwhile, US West Texas Intermediate (WTI) crude fell 70 cents (0.9%) to $76.87 a barrel to a three-month low.
S&P Global data showed a positive movement in US business activity this month and manufacturers also reported a jump in prices by various factors. This will open an easy path for commodity inflation to occur in the coming months.
Last Wednesday, the minutes of the US Federal Reserve's (Fed) latest policy meeting showed that policymakers are still skeptical if current interest rates are high enough to tame stubborn inflation.
High interest rates further increase the cost of borrowing and can slow economic activity and dampen demand for oil.
In the market, US crude oil stocks rose by 1.8 million barrels last week compared to an estimate of 2.5 million barrels.
However, the EIA reported US gasoline demand was at its highest level since November and provided some support for energy markets ahead of the Memorial Day holiday weekend.
US gasoline consumption makes up about 9% of global oil demand.
For now, investors are looking forward to the June 1 meeting by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) which will discuss the decision on its production policy.
Russia in its report, their production exceeds the quota set by OPEC+ for technical reasons and they will present their plan to the OPEC Secretariat to compensate for the error.
