Oil prices dive $2 on fears of Asian pandemic, possible U.S. rate hikes – Reuters

Oil prices dive $2 on fears of Asian pandemic, possible U.S. rate hikes – Reuters

Oil prices dropped over $2 a barrel on Wednesday to their lowest in three weeks, on worries that surging COVID-19 cases in Asia would dent demand for crude and that U.S. inflation fears could prompt the Federal Reserve to slow economic growth with interest rate hikes.

Traders also cited rumors that the Iran nuclear talks were making progress, which could boost global crude supplies and depress prices. read more

Brent futures fell $2.05, or 3.0%, to settle at $66.66 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.13, or 3.3%, to settle at $63.36. Earlier in the day, WTI was down more than 5%.