Oil prices dipped in trade on Thursday as the dollar firmed, while the possibility of further interest rate hikes from global central banks also heightened demand concerns. West Texas Intermediate Crude (WTI) futures slid 56 cents, or 0.73%, to $76.80. Brent crude futures fell 50 cents, or 0.60%, to $82.29 per barrel. Both contracts fell as the dollar gained. A stronger dollar weakens oil demand as it makes the commodity more expensive for those holding other currencies. Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank will raise interest rates further next year, even as the economy slips towards a possible recession. “Oil price is under pressure today as the Fed’s hawkish guidance for its monetary policy sparked renewed concerns about economic growth again, lifting the U.S. dollar and sending commodity prices down,” said Tina Teng, an analyst at CMC Markets. Chinese economic data for November were “much lower than expected, further darkening the demand outlook,” Teng added. The world’s second-biggest economy lost more steam as factory output slowed and retail sales extended declines, both missing forecasts and clocking their worst readings in six months amid surging COVID-19 cases. Also weighing on oil prices, Canada’s TC […]
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