FX.co ★ Oil Futures Rebound After Early Weakness, Settle Sharply Higher

Oil futures settled higher on Thursday as prices rebounded as tight supply levels outweighed concerns about outlook for energy demand.

Libyan oil output has reportedly collapsed to 100,000-150,000 barrels per day (bpd), a fraction of the 1.2 million bpd seen last year.

Meanwhile, the International Energy Agency said it expects demand to rise further in 2023, growing by more than 2% to a record 101.6 million bpd.

The dollar's sharp fall contributed as well to the rise in oil prices.

West Texas Intermediate Crude oil futures for July ended higher by $2.27 or about 2% at $117.58 a barrel.

WTI futures had ended about 3% down on Wednesday.

WTI crude futures dropped to a low of $112.31 a barrel earlier in the session amid concerns that high inflation and rising interest rates will tip the U.S. economy into recession.

Brent crude futures were up $1.52 or 1.28% at $120.03 a barrel a little while ago.

A sharp interest rate hike from the Federal Reserve has stirred worries about a recession sometime in the next year.

After announcing a 75-basis point rate hike on Wednesday and leaving the door open for another rate increase of that magnitude in July, Fed Chair Jerome Powell said the central bank cannot control all the factors driving inflation.

After the Fed's rate hike move, the Swiss National Bank and the Bank of England have raised their interest rates to combat inflation.