Oil Down For a Change After Buying Interest Spike
2022.07.19 06:21
By David Ho
Investing.com – Oil was down on Tuesday morning in Asia, after a hike in price brought on by stronger buying interest from a plunging dollar and expectations that the U.S. Federal Reserve’s interest rate hike may be less than thought.
Brent oil futures slipped 0.31% to $105.94 by 11:00 PM ET (3:00 AM GMT) and crude oil WTI futures fell 0.25% to $99.17.
Investors now await U.S. crude supply data from the American Petroleum Institute, due later in the day.
Worries about supply as Western sanctions on Russian crude and fuel supplies disrupted trade flows to refiners and end-users have affected oil prices. There is also growing concern that central bank efforts to tame surging inflation may trigger a recession that would cut future fuel demand.
Last week, two U.S. Federal Reserve officials indicated that the central bank would likely only raise interest rates by 75 basis points at its July 26-27 meeting. A lower hike translates to a lesser economic crunch that would reduce fuel demand.
