Oil prices slip after U.S. interest rate hike on fears for demand

Reuters · 22 Sep 2022 965 Views
Illustration shows Oil barrels in front of rising stock graph

Model of Oil barrels are seen in front of rising stock graph in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration

Sept 22 (Reuters) - Oil prices edged lower in early Asian trade on Thursday after the U.S. Federal Reserve raised interest rates significantly to curb inflation, with fears for the global economy casting a shadow over future fuel demand.

Brent crude futures fell 16 cents, or 0.2%, to $89.67 per barrel by 0013 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 15 cents to $82.79 per barrel.

The Fed raised its target interest rate on Wednesday by 75 basis points for the third time, to a 3.00-3.25% range, and signalled more large increases to come. Risk assets like stocks fell on the news, along with oil, while the dollar

Meanwhile U.S. gasoline demand over the past four weeks fell to 8.5 million barrels per day (bpd), its lowest since February, the U.S. Energy Information Administration said on Wednesday .

Elsewhere, Germany nationalised gas importer Uniper (UN01.DE) on Wednesday and Britain said it would halve energy bills for businesses in response to a deepening supply crisis that has exposed Europe's reliance on Russian fuel. 


Editor:Callie
Proofreading:AUREL
Reprinted from Reuters, the copyright all reserved by the original author.

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