Oil prices dropped again today on the back of a strong dollar and Fed interest-rate hikes designed to quell inflation. The U.S. Federal Reserve is likely to raise interest rates by another 75 basis points tomorrow to rein in inflation. Those expectations are weighing on equities, which often move in tandem with oil prices.
WTI closed below $85 dollars per barrel closing at $84.45 per barrel, down – $1.28 per barrel on the day of its expiration (October Delivery). The more active November contract settled down -$1.42 per barrel to settle at $83.94 per barrel. Brent crude futures settled down -$1.38 per barrel, (-1.5%), to settle at US$90.62 per barrel. Both Brent and WTI are on track for their worst quarterly drops in percentage terms since the beginning of COVID-19. Expect some volatility in the markets again tomorrow. Have a great evening!