Oil falls as U.S. Fed’s pending interest rate hike spooks investors – Reuters

Oil falls as U.S. Fed’s pending interest rate hike spooks investors – Reuters

BEIJING, Jan 27 (Reuters) - Oil prices fell on Thursday as the U.S. dollar strengthened following signs that the U.S. Federal Reserve will tighten monetary policy in the world's biggest oil user.

Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers. Dollar-denominated oil becomes more expensive for buyers using other currencies when the greenback gains. read more

Brent crude futures were down 57 cents, or 0.9%, to $89.18 a barrel at 0440 GMT, after earlier falling by as much as 1.1% to $89. Brent climbed 2% on Wednesday.