: U.S. oil futures down 2% as the Fed rate hike boosts the dollar

U.S. oil futures declined by 2% on Thursday, with prices pressured by strength in the U.S. dollar and worries that aggressive rate hikes by Federal Reserve will lead to an economic recession. Concerns that the Fed is “much more likely to overshoot on rates rather than doing too little” have grown, raising the risk of the economy “tipping” into recession, said Robbie Fraser, manager, global research and analytics at Schneider Electric. That’s a particularly “bearish prospect for crude prices due to the potential demand hit, and is further reinforced by the stronger dollar that weighs on dollar-denominated crude prices.” U.S. benchmark West Texas Intermediate crude for December delivery CLZ22 fell $1.83, or 2%, to settle at $88.17 a barrel on the New York Mercantile Exchange. Prices on Wednesday had settled at $90, the highest front-month contract finish since Oct. 10, according to Dow Jones Market Data.

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