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Crude oil falls as concerns arise that Fed rate hike will depress demand

Crude oil futures closed lower on Wednesday (June 15) after the U.S. reported a rise in oil inventories. Oil markets also came under pressure as the Federal Reserve raised interest rates by 0.75% at its meeting yesterday.

  • WTI crude futures fell $3.62, or 3%, at $115.31 a barrel.
  • BRENT crude futures were down $2.66, or 2.2%, at $118.51 a barrel.

Crude oil futures fell after the U.S. Energy Information Administration (EIA) reported a 2 million barrel increase in U.S. crude oil inventories.

The data was in line with the American Petroleum Institute (API) report that U.S. crude oil inventories rose by 736,000 barrels.

The Fed Board decided at its meeting yesterday to raise the short-term interest rate by 0.75% to 1.50-1.75%. This was the largest rate hike in 28 years and signaled another 1.75% rate hike this year.

The Fed also lowered its forecast for U.S. economic growth this year to 1.7% from 2.8% in March and expects it to grow 1.7% in 2023.

The Spot Market is Open

Thursday, June 15, 2022

Updated at


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