"Hawkish commentary on rates continues to raise concerns of the demand outlook weighing on prices," National Australia Bank analysts said in a note.
Higher interest rates could strengthen the greenback, making commodities more expensive for holders of other currencies, and also dampen oil demand.
"OPEC+'s multi-output-cuts have kept oil prices above key levels, which may see a further production reduction by the cartel to keep the crude market's stability," said Tina Teng, an analyst at CMC Markets.
However, the latest Reuters survey showed OPEC oil output has fallen only slightly in June as increases in Iraq and Nigeria limited the impact of cutbacks by others.
U.S. crude output fell in April to 12.615 million barrels per day (bpd), its lowest since February, the U.S. Energy Information Administration said on Friday.
Persons:
Brent, WTI, Tina Teng, Baker Hughes, Florence Tan, Emily Chow, Sonali Paul
Organizations:
PMI, SINGAPORE, U.S . Federal, Brent, . West Texas, National Australia Bank, P Global, Saudi, Petroleum Reserve, CMC, Organization of, Petroleum, U.S . Energy, Administration, Thomson
Locations:
China, Saudi, U.S, Saudi Arabia, OPEC, Iraq, Nigeria