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Oil Tumbles Below $110 as Fed Signals More Hawkishness Ahead

  • Fed this week raised interest rates to curb surging inflation
  • WTI crude dropped 6.8% n New York, Brent also slumped
Updated on

Oil fell the most in three months as Federal Reserve Chair Jerome Powell doubled down on his determination to curb the hottest inflation in decades with more aggressive rate hikes.

West Texas Intermediate dropped to $109.56, shedding 6.8%, the biggest daily drop since March. Powell this week openly endorsed for the first time raising interest rates well into restrictive territory, a strategy that’s often resulted in an economic downturn and could blunt energy consumption. On Friday he reiterated that the Fed is focused on returning inflation to its 2% target.