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Oil Jumps 2% as Supply Woes Offset Demand Fears After Rate Hike

  • Federal Reserve increased interest rates by 75 basis points
  • Brent, WTI earlier fell more than 2% in intraday trading
Updated on

Oil posted its biggest gain in over a week in choppy trade as traders weighed the prospect of more rate hikes against persistently tight supplies.

West Texas Intermediate futures closed above $117 a barrel after rebounding from a session low of $112.31. Brent ended just under $120. This week, the Federal Reserve raised interest rates 75 basis points as it sought to combat surging inflation. The US central bank signaled a willingness to accept a recession and a rise in unemployment in its resolve to contain elevated inflation.