Oil Prices Surge Amid Fading Hopes for Fed Rate Hike

Oil prices surged over $1 a barrel on August 14 as markets digested new data that dented expectations for a Federal Reserve rate hike next month. US and European shares fell, with the S&P 500 declining 0.17% to 7,785.76 points.

The US dollar dropped after a surprise decline in US retail sales supported gold prices. The US Treasury yield rose 4.72 basis points to 4.688%. Brent crude oil futures settled at $88.52 a barrel, up 1.67%, while US futures finished at $82.40, up 1.42%.

Capital.com strategist Kyle Rodda said the markets are 'relatively thin' on event risk and that geopolitical uncertainty remains a major roadblock to market growth. GlobalT Investments portfolio manager Thomas Martin noted that drivers in the market include various aspects of AI.