June 3, 2023

Dubai Week

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Oil fell 2% after interest rate hikes

Oil fell 2% after interest rate hikes

Oil prices fell more than $ 3 a barrel on Wednesday as markets worried about falling demand following the US Federal Reserve raising interest rates by three-quarters.

Brent crude for August delivery ended the trading session at $ 2.7 or 2.2 percent, after falling to $ 117.75 during the session, at $ 118.51 a barrel.

The US benchmark West Texas Intermediate crude for July delivery fell $ 3.62 or 3.04 percent to $ 115.31 a barrel after falling to $ 114.60 during the session.

The biggest increase in US interest rates since 1994 sent the dollar to higher levels, bringing its index to its highest level since 2002. The rise of the green coin will push up the price of oil in dollars for holders of other currencies, which will reduce demand. .

The U.S. Energy Information Administration said Wednesday that crude oil reserves in the U.S.’s strategic oil reserves fell to an all-time low last week, and that crude oil reserves fell 7.7 million barrels a week, according to government agency data. 511.61 million barrels, ending June 10, the lowest since January 1987.

The U.S. Energy Information Administration said Wednesday that U.S. oil and distillation inventories were higher last week and gasoline stocks were lower.

Last week, U.S. refinery companies’ crude oil consumption fell 67,000 barrels per day, refinery operating rates fell 0.5 percentage points, and energy information management data showed that U.S. petrol stocks fell 700,000 barrels to 217.5 million barrels. Distillation stocks, including diesel and heating oil, rose 1.1 million barrels, up 700,000 barrels to 109.7 million barrels, against expectations of an increase of 300,000 barrels, while net U.S. crude oil imports fell to 1,0062,062 last week. 3.26 million barrels per day.

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