Crude oil falls as Fed plans hikes in interest rates

January 25, 2022 03:44 PM AEDT | By Arpit Verma

Crude oil falls as Fed plans hikes in interest rates — Image source: © Edhardream | Megapixl.com

Falling oil prices

Both oil benchmarks rose for the fifth consecutive week in the last week to reach the highest level since 2014.

Oil prices

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.

Bottom Line

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.

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