Oil Drops In Risk-Off Mood as Fed Signals Additional Rate Hikes
- Crude’s relative-strength index suggests gains may be overdone
- Oil inventories fell 2.14 million barrels last week, EIA says
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Oil’s breakneck rally is taking a breather as a smaller-than-expected drop in US crude stockpiles bolstered technical resistance to further gains.
West Texas Intermediate’s more-active futures dropped below $90 a barrel after the Federal Reserve left its benchmark interest rate unchanged while signaling borrowing costs will likely stay higher for longer after one more hike this year. Traders fled risk assets, with the equities also falling.