Oil drops as investors assess Fed's message, outlook for dollar
BNN Bloomberg
Oil fell as investors weighed the Federal Reserve policy outlook after another hike and digested a mixed snapshot of U.S. supply and demand.
West Texas Intermediate futures for May dipped toward US$70 a barrel, although they traded off the intraday low as the dollar eased. Fed Chair Jerome Powell advised that more tightening may be in store after Wednesday's 25 basis-point rise, and added that rates won't be cut this year. The comments came less than two weeks after the most severe banking crisis since 2008.
The appeal of risk assets including commodities was also bruised after Treasury Secretary Janet Yellen said regulators weren't looking to provide “blanket” deposit insurance to stabilize the banking system without working with lawmakers, putting the focus back on the fragility of financial institutions.