Oil set for fourth weekly loss with rate hikes darkening outlook

Oil headed for a fourth weekly decline after a raft of interest-rate hikes around the world darkened the outlook for energy demand.

West Texas Intermediate (WTI) was steady near $84 a barrel, and down almost 2% for the week. The Federal Reserve gave its clearest signal yet that it's willing to tolerate a US recession as the necessary trade-off for regaining control of inflation, while the UK, Norway and South Africa also followed with hikes.

Crude remains on track for its first quarterly loss in more than two years as concerns about a global economic slowdown weigh on the demand outlook. OPEC may be forced to make additional production cuts if prices fall below current levels, according to Nigeria's Oil Minister Timipre Sylva.

A stronger dollar has also added to bearish headwinds this week, making commodities priced in the currency more expensive for investors. The blitz of rate hikes is unlikely to mark the end of a campaign to tame inflation, even as central banks run the risk of driving their economies into recession.