Rate hike expectations boost fears of slow economic growth
Oil price intermonth spreads imply firm nearterm demand

TOKYO, June 29 Reuters Oil prices fell on Thursday, paring some of the previous day39;s gains, as investors took profits on concerns of further interest rate hikes dampening economic growth and global fuel demand while weak economic data in China also weighed on sentiment.

Brent crude futures declined 40 cents, or 0.5, to 73.63 a barrel by 0444 GMT. U.S. West Texas Intermediate WTI crude futures fell 32 cents, or 0.5, to 69.24 a barrel.

Both benchmarks climbed about 3 on Wednesday after the U.S. Energy Information Administration EIA said crude inventories dropped by 9.6 million barrels in the week ended June 23, far exceeding the 1.8million barrel draw analysts had forecast in a Reuters poll.

The market turned around on renewed worries about further rate hikes in the U.S. and Europe, which will reduce global oil demand, said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

Leaders of the world39;s top central banks reaffirmed on Wednesday they think further policy tightening will be needed to tame stubbornly high inflation but still believe they can achieve that without triggering outright recessions.

The U.S. Federal Reserve Chair Jerome Powell did not rule out further hikes at the central bank39;s next meeting while European Central Bank President Christine Lagarde cemented expectations for a ninth consecutive rise in euro…