Oil prices fell nearly 1% on Tuesday, reversing previous gains as U.S. consumer prices unexpectedly rose in August, providing cover for the U.S. Federal Reserve to set another sharp interest rate hike next week. .
Brent for November delivery closed $0.83 lower at $93.17 a barrel, down 0.9% after trading between $95.53 and $91.05.
U.S. crude WTI for October closed down $0.47, or 0.5%, at $87.31, after a high of $89.31 and a low of $85.06 .
The consumer price index rose 0.1% last month after being unchanged in July, the US Labor Department said. Economists polled by Reuters had forecast a drop of 0.1%.
Fed officials are due to meet next Tuesday and Wednesday, with inflation well above the US Federal Reserve’s 2% target.
Oil is often quoted in US dollars, so a stronger dollar makes the commodity more expensive for holders of other currencies.
Renewed Covid-19 restrictions in China, the world’s second-largest oil consumer, have also weighed on oil prices.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
