Oil Prices Slide as Strait of Hormuz Flows Remain Limited
Oil prices have dipped due to limited flows through the Strait of Hormuz and Saudi Arabia's closure of a key oil pipeline for repairs. The Brent crude benchmark fell by 2.2% to $103.48 per barrel, while US futures are pointing towards a market rebound following the Federal Reserve's first interest rate hike in three years.
The quarter-point increase brings the Fed's key rate to a target range of 3.75%-4.00%, aiming to control stubborn inflation. This move may lead to higher borrowing costs for mortgages, auto loans, and credit cards. The US stock market indexes initially declined but are looking to recover ground on September 17.
New records were set in diesel prices, with a record high of $6.396 per gallon today, surpassing the previous June 2022 record price of one gallon of diesel and gasoline ($10.80/gal). The US dollar fell to 155.64 Japanese yen from 156.26 yen, while the euro traded at $1.1478, up from $1.1465.
Investors are waiting on some economic data, including weekly jobless claims, which could provide further insight into market trends.