The prices of Petroleum fell more than 3% on Monday, following US stock markets. USA lower after US service sector data raised concerns that the Federal Reserve can continue its aggressive tightening policy.
Brent futures fell $2.89, or 3.4%, to settle at $82.68 a barrel. US Crude Oil (WTI) fell $3.05, or 3.8%, to settle at $76.93 a barrel. Both benchmarks had risen by more than $2 before reversing direction.
US service industry activity unexpectedly rebounded in November as employment rebounded, providing further evidence of the economy’s momentum as it braces for a predicted recession next year.
The news caused oil and stock markets to cut gains.
The data defies hopes that the Fed could slow the pace and intensity of its rate hikes amid recent signs of easing inflation.
“Macroeconomic jitters about the Fed and what they will do with interest rates are taking hold in the market,” said Phil Flynn, analyst at Price Futures group.
Backing the market earlier, the Organization of Petroleum Exporting Countries and allies including Russia, together called OPEC+agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) from November to 2023.
Source: Moneytimes
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