Oil’s Rally Stalls on Concerns Fed Hikes Will Hurt Energy Demand

Oil prices decreased as a surge brought on by OPEC+'s commitment to reduce output was stopped by dangers to energy consumption brought on by tighter monetary policy.

After a week-long nationwide holiday, China's markets reopened, and West Texas Intermediate fell below $91 per barrel.

The Organization of Petroleum Exporting Countries and its allies, including Russia, agreed to reduce supply by 2 million barrels per day last week, sending the US oil benchmark up 17%.

Traders are worried that significant central banks, such as the Federal Reserve, may raise interest rates even further in order to restrain inflation.

The US labour market is still strong, according to data released last week, fueling hopes that the Fed would raise rates by another 75 basis points next month.

Concerns about the global slowdown continue to put pressure on commodities like oil as well as risk assets like equities.


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Leaving for the US to attend G-20 and IMF meetings is the finance minister