WTI, Brent Prices Edge Lower

WTI, Brent Prices Edge Lower
WTI, Brent Prices Edge Lower

Oil prices inched lower on Wednesday on concerns of another US Federal Reserve interest rate hike next week after consumer prices unexpectedly rose in August, outweighing support from a robust OPEC oil demand growth forecast.
Brent crude futures fell 38 cents, or 0.4%, to $92.79 a barrel. US West Texas Intermediate crude was at $87.02 a barrel, down 29 cents, or 0.3%, reported.
Pressuring prices was a hotter-than-expected US inflation report on Tuesday that dashed hopes that the Fed could scale back its rate policy tightening in the coming months. Fed officials are set to meet next Tuesday and Wednesday, with inflation remaining way above the US central bank's 2% target.
"A strong US dollar and an expectation for another super-sized rate hike by the Fed weighed on sentiment,” said Tina Teng, an analyst at CMC Markets.
The dollar climbed close to a 24-year peak against the yen on Wednesday. Oil is generally priced in US dollars, so a stronger greenback makes the commodity more expensive to holders of other currencies.
In China, tough ongoing Covid-19 curbs are squeezing fuel demand at the world's largest oil importer.
"China's zero-Covid policy remains intact and that will keep any rebounds that emerge over the coming weeks capped," said Edward Moya, a senior market analyst at OANDA, in a note.

Add new comment

Read our comment policy before posting your viewpoints