Fear of Fed rate hike scares oil market, crude prices fall
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US Fed Rate Hike: There is a possibility of another increase in the rate of the Federal Reserve. In view of this, the price of oil has declined on Wednesday. It is being told that the increase in the interest rate of the Federal Reserve will affect the pace of development, due to which the possibility of reducing oil consumption cannot be ruled out.
Decline in crude inventory in US
Let us tell you that the value of the dollar makes oil more expensive for other currency holders and can weigh on demand. Amidst all this, there was a rise in the prices of crude oil in the early trade today. At the same time, due to the fall in crude inventory in the US and China’s economic data being better than expected, there are signs of further strength in demand. Brent crude futures stood at $84.84 per barrel (down 0.4%) and WTI crude at $80.89 per barrel (down 0.4%). Atlanta Fed President Raphael Bostic said on Tuesday that another interest rate hike is likely for the US central bank to fight inflation.
European Central Bank officials also alert about inflation
At the same time, European Central Bank officials are also alert about inflation and have suggested that interest rates should continue to rise. Oil prices were buoyed by industry reports that US crude inventories fell by nearly 2.68 million barrels in the week ended April 14. It was told that the list of gasoline and distillate also fell last week. Here, China’s economy grew 4.5% faster than expected in the first quarter. Due to which the demand for oil has increased further.
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