Oil prices fell more than $3 on Wednesday, as markets worried about a drop in demand after the Federal Reserve raised interest rates by three-quarters of a percentage point.
Brent crude futures for August closed down $2.7, or 2.2%, at $118.51 a barrel for a low of $117.75.
U.S. crude for July was down $3.62, or 3.04%, to $115.31 a barrel after hitting $114.60. The U.S. central bank’s biggest rise since 1994 also lifted the dollar, with the dollar index rising to its highest level since 2002.
A stronger US currency makes dollar-priced oil more expensive for holders of other currencies, reducing demand.
Meanwhile, US oil production, which has been virtually stagnant in recent months, rose by 100,000 barrels a day last week to 12 million bpd, its highest level since April 2020, IEA data showed.
The data also showed an increase in US crude and oil inventories, while gasoline saw a surprising drop.
Source: CNN Brasil
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