The Fed raised its target interest rate by three quarters of a percentage point, to a range of between 3.00 and 3.25%, noting that more significant hikes are to come. Risky assets such as stocks and oil fell while the dollar rose.
Brent Futures they fell 79 cents, or 0.9%, to $89.83 a barrel.while US West Texas Intermediate (WTI) crude fell $1, or 1.2%, to $82.94.
US gasoline demand over the past four weeks fell to 8.5 million barrels per day (bpd), its lowest level since February, according to the US Energy Information Administration (EIA).
“The biggest piece of data is the continued weakness in gasoline demand. It’s really what has been haunting this market.”said John Kilduff, a partner at Again Capital LLC in New York.
The US Energy Information Administration reported a 1.1 million-barrel rise in crude stocks last week, less than the 2.2 million-barrel forecast in a Reuters poll.
Analysts at energy consultancy Ritterbusch and Associates said oil prices rose earlier in the session “largely on Putin’s apparent escalation of the Ukraine war” but were held back by a “strong dollar and the forecast of higher interest rates in the United States”.
Russian President Vladimir Putin has called up 300,000 reservists to fight in Ukraine and backed a plan to annex parts of the country, hinting he was prepared to use nuclear weapons.
US President Joe Biden has accused Russia of making “reckless” and “irresponsible” threats to use nuclear weapons.
Source: Ambito
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