New York’s West Texas Intermediate (WTI) crude futures ended negative on Thursday (July 14) as markets were pressured by concerns that The US Federal Reserve (Fed) accelerating interest rate hikes will result in a recession. and affect the demand for oil
The WTI crude oil contract was delivered in August. It was down 52 cents, or 0.5%, at $95.78 a barrel.
The Brent crude oil contract (BRENT) delivered in September. It was down 47 cents, or 0.5%, at $99.10 a barrel.
top Fed officials That includes St. Louis Fed Chairman James Bullard, signaling that the Fed could raise interest rates by more than 0.75%, or as strong as 1%, at this month’s meeting. After the US inflation numbers rose above expectations.
The US Department of Labor said The Consumer Price Index (CPI), a measure of inflation based on consumer spending, jumped 9.1 percent in June year on year. It was also the highest level in 40 years. The figure was also above the 8.6 percent in May and above the 8.8 percent expected by analysts.
Crude oil contracts have been affected by the strong dollar. by dollar index The dollar’s movement index against six major currencies in a basket of currencies rose 0.53% to 108.5420 overnight.
The strength of the dollar has resulted in crude oil contracts priced in dollars. It is more expensive and less attractive to investors holding other currencies.
The market is also pressured by concerns that China’s continued use of strict measures to contain the spread of COVID-19 in many cities will affect oil demand.
