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Oil prices fell $2 per barrel to their lowest level in two weeks on Wednesday as investors grow more concerned that recent economic data means more aggressive interest rate hikes by central banks, putting pressure on the economic growth and demand for fuel.
Brent crude fell $2.45, or 3%, to $80.60 per barrel. US oil (WTI) fell $2.41, or 3%, to $74.05 a barrel.
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Closing levels were the lowest for both benchmark contracts since February 3.
Minutes from the US Federal Reserve's latest meeting showed that most Fed officials agree that the risks of high inflation remain a "key factor" shaping monetary policy and warrant continued rate hikes until they are brought under control.
“While better U.S. economic data should mean better oil demand, the concern is that this will force the Fed to tighten monetary policy too much to control inflation,” said UBS analyst Giovanni Staunovo.
“This is also supporting the US dollar, which does not help oil.”
The US dollar index rose for the second session in a row, making dollar-denominated oil more expensive for holders of other currencies. [USD/]
Source: Shariq Khan | Notícias Agrícolas
