- Crude oil prices tumbled on Monday.
- Wall Street stocks slumped to the lowest level since 2020.
- The possibility of interest rate hikes pushed down equities while the dollar reached a two-week high level.
Crude Oil prices tumbled nearly 2% on Monday due to rising concerns on the possibility of hikes in interest rates earlier than expected by the US Federal Reserve.
Wall Street stocks slumped to the lowest level since 2020, pulling down other risk assets like crude oil.
April delivery Brent Crude oil futures last traded at US$85.72 per barrel down 0.67%, whereas March delivery WTI crude oil futures traded 0.32% up at US$83.58 per barrel as of 25 January 2022 at 12:47 PM AEDT.
The prices of both the crude oil benchmarks prices are nearly 10% high in 2022, amid tight supplies and OPEC+ members struggling to hit a targeted monthly output increase of 400,000bpd.
Falling oil prices
Both oil benchmarks rose for the fifth consecutive week in the last week to reach the highest level since 2014.
Source: © Batareykin | Megapixl.com
The possibility of interest rate hikes pushed down equities while the dollar reached a two-week high level on Monday. The ongoing tension between Russia and the US over Ukraine also buoyed the dollar.
The tensions in Ukraine have been increasing as Russia massed troops near its borders. The move has fuelled fears of supply disruptions in Europe.
Meanwhile, the UAE intercepts and destroys two ballistic missiles launched by Yemen's Houthis. The attack is the second in a row after the last week when Houthis targeted an oil facility.
Crude oil prices tumbled on Monday on the back of the rising US dollar, fuelled by rising concerns on the possibility of hikes in interest rates by the US Federal Reserve.