Investor Alert

Market Pulse Archives

Sept. 21, 2022, 2:39 p.m. EDT

U.S. oil futures settle lower as Fed rate hike feeds worries about a recession

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By Myra P. Saefong

Oil futures declined on Wednesday, with U.S. benchmark prices settling down by more than 1%. The Federal Reserve said Wednesday that it would raise its benchmark federal-funds rate by 0.75 percentage point, and said rates are going to move sharply higher before the end of the year. "Higher rates are restrictive in nature, and likely to become a headwind on consumer spending including that on refined products like gasoline and diesel," said Tyler Richey, co-editor at Sevens Report Research. However, "today's Fed announcement is not a bearish game changer for the oil market, and we are continuing to look for oil to find a bottom here in the upper $70s to low $80s range, as the still fluid fundamental backdrop is reassessed in real time." November WTI crude fell $1, or 1.2%, to settle at $82.94 barrel on the New York Mercantile Exchange.

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.