Crude oil futures ended lower on Thursday amid concerns the Federal Reserve will keep interest rates higher for a longer period due to inflationary pressures. On the rate front, with consumer prices rising more than expected in the month of March, it is now feared that the Fed is unlikely to reduce interest rate till September. Further, the recent data showing a sharp jump in U.S. crude inventories last week weighed as well, offsetting supply concerns stemming from tensions on the geopolitical front.
Benchmark crude oil futures for May delivery dropped $1.02 or 1.85% to settle at $85.02 a barrel on the New York Mercantile Exchange. Brent crude for June delivery fell $0.56 or 0.62% to $89.74 per barrel on London's Intercontinental Exchange.