Crude oil closes negative on Thursday

Crude oil futures closed lower on Thursday (Aug. 25) as markets were pressured by concerns that the Federal Reserve’s (Fed) rate hike will lead to a slowdown in oil demand.

  • WTI crude futures fell $2.37, or 2.5%, at $92.52 a barrel.
  • BRENT crude futures were down $1.88, or 1.9%, at $99.34 a barrel.

Negotiations between the U.S., the EU, and Iran on the nuclear agreement are still ongoing. Iran said it had received a response from the U.S. to a final EU proposal for reviving the 2015 nuclear agreement.

If the talks move forward and the U.S. agrees to Iran’s demands, it could open the way for Iran to resume exporting oil to the world market.

The market was also pressured by fears that Fed rate hikes would hurt oil demand. CME Group’s latest FedWatch tool shows that investors are 60.5% in favor of a 0.75% Fed rate hike to 3.00-3.25% at the September 20-21 meeting and only 39.5% in favor of a 0.50% rate hike.

Investors are eyeing the Fed’s annual meeting in Jackson Hole, Wyoming, which began yesterday and ends tomorrow (Aug. 27).

The Fed is expected to give clearer signals on the U.S. economy, interest rate trends, and balance sheet reduction (QT) amid inflation concerns.

The Spot Market is Open

Friday, August 26, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
12.00

93.28

+0.76

+0.82%

Leave a Reply

Change Language
%d bloggers like this: