Crude Prices Add to Sell-Off on Fed Rate Hike Expectations

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Oil prices fell along with European and U.S. stocks on Tuesday and were headed for a fourth monthly decline, on the specter of an economic slowdown and subsequent drop in fuel demand as a result of the expected rise in interest rates in the United States.

* Brent crude futures for November delivery were down $1.18, or 1.3%, at $90.82 a barrel by 1353 GMT, erasing earlier gains.

* US West Texas Intermediate crude for October delivery was down $1.31 at $84.42. The October contract expires on Tuesday and the most active November contract was down $1.33, or 1.6%, at $84.03.

* Both Brent and WTI are on track for their worst quarterly declines in percentage terms since the start of the coronavirus pandemic. Brent reached about $139 a barrel in March, its highest since 2008.

* The dollar firmed near two-decade highs against other currencies on Tuesday, making oil more expensive for other currency holders, amid a spate of central bank meetings around the world this week. .

* The US Federal Reserve is likely to raise interest rates by another 75 basis points on Wednesday to curb inflation. These expectations weigh on stock markets, which typically move in tandem with oil prices.

* As other major economies tighten monetary policy, China left its benchmark interest rates unchanged on Tuesday as the world’s second-largest oil consumer tries to balance reinforcing sluggish economic growth with weakening its currency, the yuan. .

* The Bank of England will announce its decision on interest rates on Thursday.

* The US Department of Energy will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve for delivery in November, extending the timeline of a plan to sell 180 million barrels of the reserves to rein in fuel prices .

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* A document from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, shows the group missed its production target by 3.583 million barrels per day (bpd) in August, down 3, 5% of world oil demand.

* Meanwhile, the stalemate in reviving the nuclear deal with Iran also continues to prevent that country’s exports from fully returning to the market.

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