Oil dips further as hawkish Powell spurs flight from risk assets
BNN Bloomberg
Oil held a hefty loss after Federal Reserve Chair Jerome Powell signaled interest rates could rise higher and faster than previously anticipated, raising concerns about the economy and energy demand.
West Texas Intermediate futures edged lower near US$77 a barrel after posting the biggest one-day decline since early January. The remarks, made during a testimony before Congress, opened the door to the Fed lifting interest rates by half a percentage point at this month's meeting and weighed on equity markets on Wednesday.
Adding to the bearishness, OPEC Secretary-General Haitham Al-Ghais said that slowing oil consumption in Europe and the U.S. poses a concern, even as Asia experiences “phenomenal” growth. Citigroup Inc. said that global supply is ample and demand remains low.
