Oil prices fall after US Federal Reserve hikes interest rates

| Updated: Aug 23, 2017 11:20 IST

New Delhi [India], Dec 15 (ANI): Oil prices on Thursday dropped after the hike in the US interest rates prompted a flood of money away from commodities and into US bonds and the dollar. US West Texas Intermediate (WTI) crude oil futures were trading at USD 50.89 per barrel at 00101 GMT, down 15 cents from their last settlement. International Brent crude oil futures were down five cents at USD 53.85 a barrel. "The Federal Reserve hike saw bond yields rise, dealing a blow to commodities in general," said a senior market analyst at futures brokerage OANDA in Singapore. A stronger dollar, in which oil is traded, can hit crude demand as it makes fuel purchases more expensive for countries using other currencies at home. On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) pumped 33.87 million barrels per day (bpd) last month, according to figures it collects from secondary sources, up 150,000 bpd from October. In a monthly report it reported that the group's output had continued to rise, adding to a global glut, ahead of the January start of its first supply cut agreement since 2008. Also, the data from the US Energy Information Administration (EIA) showed that commercial crude inventories last week declined by 2.56 million barrels to 483.19 million barrels. (ANI)