Oil Declines Below $72 a Barrel Following the Fed’s Hawkish Tilt – Investing.com India

Oil Declines Below $72 a Barrel Following the Fed’s Hawkish Tilt – Investing.com India

(Bloomberg) -- Oil fell below $72 a barrel after the Federal Reserve tilted toward tightening monetary policy, aiding the dollar and offsetting signs that the crude market is tightening.

West Texas Intermediate lost 0.9% in early Asian trading after ending Wednesday almost unchanged. Following a regular policy meeting, Fed Chairman Jerome Powell said officials would begin talks on tapering massive asset purchases, while penciling in two rate hikes by the end of 2023. A rise in the dollar reduces the appeal of commodities priced in the currency.

Still, the oil market continues to display signs of strength as the pandemic ebbs. A U.S. government report showed domestic crude supplies sank last week as mobility picks up. Separately, Saudi Energy Minister Prince Abdulaziz bin Salman told a conference that the cautious approach taken by OPEC+ to reviving supply was paying off, indicating that he's sticking to that position.