Oil Prices Plummet on Easing Tensions and Fed Rate Hike Expectations
Oil prices declined Wednesday as easing US-Iran tensions and expectations of a Federal Reserve rate hike reduced supply and demand concerns. International benchmark Brent crude futures for November delivery traded at $107.46 a barrel, down 1.3% from the previous close of $108.75.
The House of Representatives on Tuesday passed a war powers resolution directing President Donald Trump to withdraw US forces from the conflict with Iran. The resolution cited rising gasoline and mortgage costs, inflation, billions in government spending, and US military casualties as the costs of the conflict.
Expectations that the Fed will tighten monetary policy are also weighing on prices. A potential 25-basis-point rate hike would slow economic activity and oil demand in the US, the world's largest oil consumer.