The prices of Petroleum were flat on Thursday as markets weighed the possibility of an aggressive and unforeseen rate hike. fed.
After rising more than 1% in early trading, Brent crude futures fell 0.14 dollaror 0.2%, at $91.41 a barrel.
The oil in USA (WTI), which rose more than $2 earlier in the day, closed up 22 cents, or 0.3%, to hit $89.88 a barrel.
After U.S. inflation data on Thursday reached its hottest level in 40 years, St. Louis Federal Reserve Bank President James Bullard said he wanted a full percentage point of interest rate hikes to 1 percent. July.
Interest rate futures showed a 60% chance of a 50 basis point rally in March following Bullard’s comments, and US equity markets tumbled.
The dollar gave up some of its previous losses. A stronger dollar makes oil and other commodities more expensive for those with other currencies.
“Prices are confused between what appear to be strong inventory statistics and signs that the Fed will raise rates faster than expected in 2022,” said Scott Shelton, energy expert at United ICAP.
On Wednesday, oil prices rose after data showed that U.S. crude inventories unexpectedly fell last week to the lowest since October 2018, while demand for fuel hit a record high.
Source: Moneytimes
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