Oil Falls on US Fed Rate Hike and Signals of Softening Demand
- US central bank rose interest rates by 75 basis points
- EIA data shows gasoline demand slowing amid record prices
Fuel prices at a gas station in San Francisco, California, US.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Oil fell after the Federal Reserve delivered the biggest rate increase in almost three decades and US government report showed signs of demand slipping.
West Texas Intermediate settled below $116 for the first time in two weeks after the US central bank confirmed market expectations by raising interest rates 75 basis points. Higher interest rates could lead to an economic slowdown, and add headwinds to crude’s recent rally. Earlier in the session, prices edged lower as US crude production hit 12 million barrels a day for the first time since the start of the pandemic, while gasoline demand edged lower and is trailing seasonal norms.