Oil Heading for Weekly Decline

Oil dropped for a second day on Friday and was heading for a weekly decline, as a UK interest rate hike added to concern over economic growth that outweighed lower US crude stocks and other signs of tighter supplies.
Both crude benchmarks had dropped about $3 on Thursday after the Bank of England raised interest rates by a bigger-than-expected half a percentage point. Central banks in Norway and Switzerland also hiked rates, Reuters reported.
Brent crude slipped $1.21, or 1.6%, to $72.93 a barrel, while US West Texas Intermediate crude was down $1.31, or 1.9%, at $68.20.
Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and cloud the oil demand outlook for the rest of the year.
The prospect of more US interest rate hikes added to those headwinds. US Federal Reserve Chair Jerome Powell said this week two more rate hikes of 25 basis points each by the end of the year was "a pretty good guess."
An increase in the dollar, drawing support from hawkish comments from global central banks, also weighed. A strong dollar makes oil more expensive for other currency holders and can hit demand and indicate higher risk aversion among investors.