Oil edged lower as the head of the US central bank lined up behind raising interest rates further in the second half of the year, and traders looked ahead to key crude stockpiles data.

West Texas Intermediate for August fell toward $72 a barrel after jumping on Wednesday on signs of a pick-up in Asian demand. Federal Reserve Chair Jerome Powell, who will deliver additional remarks on Thursday, warned yesterday that further rate hikes were likely warranted to quell inflation.

Official prints on US stockpiles are due later after holdings at the key hub in Cushing, Oklahoma, hit a two-year high last week. Ahead of that, people familiar with data from the industry-funded American Petroleum Institute said its outlook pointed to a drop nationwide, but small rise at Cushing.

WTI for August delivery declined 0.3% to $72.28 a barrel at 7:36 a.m. in London.

Brent for August settlement slipped 0.3% to $76.87 a barrel.

Source : Bloomberg