Oil Sinks More Than 5% as Powell Signals Faster End to Tapering
- Fed chair said purchases could wrap up a few months earlier
- WTI crude futures post biggest monthly loss since March 2020
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Oil in New York slid more than 5% after Federal Reserve Chair Jerome Powell said the strong U.S. economy may warrant ending the central bank’s asset purchases sooner than planned next year.
Powell’s comments during a Senate Banking Committee hearing in Washington moved financial markets Tuesday as investors bet that a looming end to the taper could lead to an increase in interest rates. While tighter monetary policy can be a sign of economic strength, it’s typically bearish for commodities. West Texas Intermediate crude futures briefly dropped below $65 a barrel for the first time since August during the session, while the global benchmark Brent also tumbled.