The price of oil dipped closer to $108 a barrel today, following a hike in interest rates in China.

US crude fell 8¢ to stand at $108.26 a barrel, while Brent crude dropped 19¢ to $122.03 a barrel at 06.47 GMT, after rising to $122.89 on Tuesday.

China, the world’s second-largest oil consumer, increased its interest rates to counter inflation, thereby curbing fuel demand growth.

Unrest in the Middle East and North Africa continue to plague investor concerns about supply, reports Reuters.