Crude oil prices on track for sharp weekly decline amid Fed's hawkish stance, surge in US stockpiles

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Also Read: Emkay projects Brent oil price range at $83 to $92 per barrel in the short termTraders remain concerned that prolonged high interest rates in the US will hurt the economic outlook and demand for energy. In the previous trading session, crude oil prices dropped over 0.65% following the release of the Federal Reserve meeting minutes, which indicated a lack of confidence among policymakers regarding imminent interest rate cuts.The minutes showed that while policymakers viewed current policy as "well positioned," some expressed readiness to tighten policy in the event of inflation spikes.

Additionally, it was noted that achieving greater confidence in inflation reaching the targeted 2% level would take longer than previously expected.Also Read: India's Russian oil imports rise to nine-month high in April on shipmentsAtlanta Fed President Raphael Bostic on Thursday reiterated the chorus from officials this week that the central bank needs to be patient on its next move as there is still considerable upward pressure on prices.Further, the stronger-than-expected U.S. business activity also reduced bets on Federal Reserve interest rate cuts this year, which weighed on crude prices.

S&P Global reported that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, jumped to 54.4 this month, the highest level since April 2022, up from a final reading of 51.3 in April.This resilience is making it difficult for inflation to cool, which helps explain why the Fed is intent on keeping rates higher for longer.Also Read: As Russian discounts fall, Indian refiners join hands to negotiate better termsAdditionally, data on Thursday showed that the number of Americans filing new claims for