Oil prices drop amid Fed decision, US inventory data


The United States' crude oil inventory has increased by 1.1 million barrels during the week ending September 16, leading to a drop in prices. – EPA pic, September 22, 2022.

OIL prices fell yesterday, pressured by the Federal Reserve’s (Fed) rate hike decision and a climb in United States crude stockpiles, reported Xinhua.

The West Texas Intermediate for November delivery decreased US$1 (RM4.57), or 1.2%, to settle at US$82.94 a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 79 cents, or 0.9%, to settle at US$89.83 a barrel on the London ICE Futures Exchange. 

The Fed yesterday delivered a third consecutive 75-basis-point hike this year in a bid to fight stubborn inflation. The move came amid growing concerns that aggressive central bank tightening would slow the global economy and hurt demand for energy. 

The US Energy Information Administration (EIA) reported that the nation’s crude oil inventories increased by 1.1 million barrels during the week ending September 16.

According to the EIA, total motor gasoline inventories rose by 1.6 million barrels last week, while distillate fuel inventories increased by 1.2 million barrels. – Bernama, September 22, 2022.



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