New York February 22 2023: Oil prices fell by $2 per barrel on Wednesday as investors grew more worried that recent economic data will encourage more aggressive interest rate hikes by central banks, pressuring economic growth and fuel demand.
Brent crude futures for April delivery were down $2.01, or 2.4%, to $81.04 a barrel at 11:33 a.m. EST (1633 GMT), while the West Texas Intermediate (WTI) crude futures dropped by $1.99, or 2.6%, to $74.37 a barrel.
Minutes from the U.S. Federal Reserve’s latest policy meeting are due on Wednesday and are expected to hint at how much further interest rates may need to rise to slow inflation in an economy that has remained stronger than expected through several rounds of monetary tightening.
“While better U.S. economic data should mean better oil demand, the concern is that this forces the Fed to overtighten monetary policy to bring inflation under control,” said UBS analyst Giovanni Staunovo.
Lending some support to oil, Russia plans to reduce crude exports from western ports in March by some 25% from February, three sources in the Russian oil market said.
