Oliver Bugarin 5 0 0 4 min to read

Oil declines as signs of interest rate hike fuel demand concerns.

Tuesday saw a decline in oil prices as central bank hints of further interest rate hikes fuel demand and recession fears.

At 09:26 a.m. local time (06:26 GMT), the price of international benchmark Brent crude was $102.59 per barrel, down 0.33 percent from the previous trading session’s closing price of $102.93 per barrel.

American benchmark West Texas Intermediate (WTI), which closed the previous session at $97.01 per barrel, was trading at $96.91 per barrel at the same time, down 0.10 percent.

As central banks are anticipated to increase interest rates more aggressively, fears of an economic downturn put pressure on oil prices.

Jerome Powell, the chairman of the US Federal Reserve, stated on Friday that the Fed purposefully changed its policy stance to one that would be sufficiently restrictive to bring inflation to 2%.

Additionally, he admitted that the rate increase in July was the second to be 75 basis points and that a particularly significant increase could be more suitable at the following meeting.

According to Powell, “Our choice at the September meeting will be based on the totality of incoming evidence and the evolving outlook.”

The current instability in Iraq, the second-largest oil producer in OPEC, increased supply concerns while reducing pricing pressure.

According to local media, supporters of Iraqi Shia cleric Muqtada al-Sadr stormed the Republican Palace, the location of the Iraqi government in Baghdad, on Monday, killing at least 13 demonstrators.

The turmoil also resulted in the injuries of more than 350 demonstrators.

Iraqis were asked by authorities to follow a national curfew and directives from the security apparatus. Al-announcement Sadr’s that he was permanently leaving politics earlier on Monday caused the situation in Baghdad to worsen.

The Republican Palace is located in the tightly guarded Green Zone, which also has a number of foreign embassies.

Since the most recent elections on October 10, 2021, Iraqi parties have been unable to establish a new government.

The American Petroleum Institute will release its oil stock projections later on Tuesday, and the US Energy Information Administration will release its official oil stock statistics on Wednesday.

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