Energy Preview: Oil Under Pressure Amid Hawkish Fed

3 Nov 2022 , 09:05 AM

Oil prices came under pressure on Thursday, tracking strength in dollar and concerns of waning demand from largest crude importer China. Weak data coupled with COVID led lockdowns in many parts of China is seen weighing down oil prices. Meanwhile, US Federal Reserve signaled that interest rates could go higher than previously anticipated, keeping the pressure on global growth and demand. The Federal Reserve on Wednesday announced its widely expected decision to raise interest rates by another 75 basis points. Citing efforts to achieve maximum employment and inflation at the rate of 2 percent over the longer run, the Fed announced its decision to raise the target range for the federal funds rate to 3.75 to 4 percent. WTI crude oil was down 0.51% at $89.54 per barrel. Powered by Commodity Insights