Brent oil hits lowest since March as rate hike bets intensify
BNN Bloomberg
Brent oil retreated after a bumper US inflation print bolstered expectations that the Federal Reserve will make further aggressive interest rate hikes.
The global crude benchmark fell as much as 2.4 per cent, touching its lowest level since March, while West Texas Intermediate also fell. Wider markets were softer on Thursday, while the dollar resumed its advance, weakening commodities priced in the currency. Traders have shifted toward expectations of an historic one percentage-point Fed interest rate hike later this month.
Time spreads are signaling scarce supply, however and Goldman Sachs Group Inc. said the market is “screaming” tightness. The bank said a large selloff this week has been driven by low liquidity and technical factors, with Brent down more than 20 per cent from its high in June.
