Crude falls amid Fed rate hike expectations By Reuters


©Reuters. File image of oil tanker booms operating in front of a drilling rig at an oil field in Midland, Texas, USA. August 22, 2018. REUTERS/Nick Oxford/File

By David Gaffen

NEW YORK, Sept 20 (Reuters) – Oil prices fell on Tuesday, along with other risk assets, on a day that highlighted the strength of the dollar and as investors anticipated more rate hikes from several central banks to fight inflation.

* Futures for November delivery were down $1.38, or 1.5%, at $90.62. US crude for October delivery fell $1.28 to $84.45. The October contract was due to expire on Tuesday and the most active November contract fell $1.42 to $83.94.

* Both Brent and WTI are on track for their worst quarterly declines in percentage terms since the start of the coronavirus pandemic. Brent reached about $139 a barrel in March, its highest since 2008.

* The dollar firmed near two-decade highs against other currencies on Tuesday, making oil more expensive for other currency holders, amid a spate of central bank meetings around the world this week. .

* The US Federal Reserve is likely to raise interest rates by another 75 basis points on Wednesday to curb inflation. These expectations weigh on stock markets, which typically move in tandem with oil prices.

* As other major economies tighten monetary policy, China left its benchmark interest rates unchanged on Tuesday as the world’s second-largest oil consumer tries to balance reinforcing sluggish economic growth with weakening its currency, the yuan. .

* The Bank of England will announce its decision on interest rates on Thursday.

* The US Department of Energy will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve for delivery in November, extending the timeline of a plan to sell 180 million barrels of the reserves to rein in fuel prices .

* A document from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, shows the group missed its production target by 3.583 million barrels per day (bpd) in August, down 3, 5% of world oil demand.

* Meanwhile, the stalemate in reviving the nuclear deal with Iran also continues to prevent that country’s exports from fully returning to the market.

(Additional reporting by Isabel Kua; Editing in Spanish by Ricardo Figueroa and Javier Leira)

Leave a Comment

Your email address will not be published.