Oil prices are falling slightly on fears that the US central bank will raise interest rates again next week.
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Oil prices are falling slightly
Oil prices fell slightly today, Wednesday, amid fears that the Federal Reserve (the US central bank) will raise interest rates again next week.
The rise in interest rates could come after an unexpected rise in consumer prices in August dispelled support from the Organization of the Petroleum Exporting Countries (OPEC) strong outlook for oil demand growth.
Brent crude futures fell 17 cents, or 0.2%, to $ 93.00 a barrel by 06:33 GMT, and US West Texas Intermediate crude futures fell 11 cents, or 0.1% , at $ 87.20.
Prices were put under pressure on Tuesday by unexpected inflation data in the US, dashing hopes that the Federal Reserve will ease its aggressive interest rate hike policy in the coming months.
Federal Reserve officials will meet next Tuesday and Wednesday, in light of inflation remaining far from its 2% target rate.
In China, the continuation of tight restrictions related to COVID-19 is reducing the demand for fuel in the world’s largest oil importer.
Prices have received some support from OPEC’s assertion of its continued expectations for global oil demand growth in 2022 and 2023, citing signs that major economies are doing better than expected despite adverse conditions such as inflation. high.
And “OPEC” said in a monthly report that oil demand will increase by 3.1 million barrels per day in 2022 and 2.7 million barrels per day in 2023, without changing forecasts from last month. .
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