In the early hours of Friday, crude oil futures took a slight dip due to concerns over potential interest rate hikes in key markets in Asia and the United States, despite a decrease in U.S. oil inventories. The Brent futures for August delivery dropped 11 cents to USD 85.60 a barrel by 0013 Greenwich Mean Time (GMT), while U.S. crude saw a decrease of 9 cents to USD 81.20 per barrel.

The consumer prices in Japan showed a 2.5% year-on-year increase, indicating a growth trend and signalling the likelihood of the country’s central bank raising interest rates shortly.

Similarly, data from the U.S. revealed a decrease in the number of new unemployment benefit claims, highlighting the overall strength of the job market. This positive employment data raised the possibility that the U.S. Federal Reserve might maintain higher interest rates for an extended period.

The possibility of higher interest rates, which can negatively impact economies and thereby oil demand, had a dampening effect on oil prices. This was despite the support from the U.S. Energy Information Administration’s report indicating a 2.5 million-barrel drawdown in U.S. crude stockpiles for the week ending June 14, bringing the total to 457.1 million barrels.

Additionally, gasoline inventories also saw a decline, falling by 2.3 million barrels to 231.2 million barrels, in contrast to the expected build of 600,000 barrels according to forecasts in a Reuters poll.