Oil Prices Decline After US Interest Rate Hike

Oil prices fell in early Asian trading after the Federal Reserve raised interest rates significantly to control inflation, as concerns about the global economy cast a shadow over future fuel demand. As of 00:13 GMT, Brent crude futures decreased by 16 cents or 0.2% to $89.67 per barrel, while West Texas Intermediate crude futures dropped 15 cents to $82.79 per barrel. The Federal Reserve raised the interest rate by 75 basis points on Wednesday for the third time this year to a range between 3.00% and 3.25%, hinting at further rate hikes. Risky assets such as stocks declined following this news, along with oil, while the dollar surged to a 20-year high against a basket of currencies, making crude oil more expensive for buyers using other currencies. Meanwhile, the U.S. Energy Information Administration reported that gasoline demand in the U.S. over the past four weeks fell to 8.5 million barrels per day, the lowest level since February.