Oil futures fell about 4% on Thursday, as a bigger-than-expected Bank of England rate hike prompted worries about the economy and fuel demand that outweighed support from a surprise draw in U.S. oil supplies.
Brent futures settled down $2.98, or 3.9%, to $74.14 a barrel. U.S. West Texas Intermediate (WTI) crude futures were down $3.02, or 4.2%, at $69.51.
The benchmarks erased gains from the previous session, during which U.S. corn and soybean prices raced to multi-month highs, raising expectations that crop shortfalls could lower biofuels blending and increase oil demand.
The Bank of England raised interest rates by a bigger-than-expected half a percentage point to fight stubborn inflation. It was the central bank's 13th straight rate hike.
Higher interest rates could slow economic growth and reduce oil demand.
Source: Reuters
