Brent Oil; At Its Lowest Level Since March

Brent oil is trading at its lowest level since March, adding concerns that the US Federal Reserve (FED) will raise interest rates more aggressively due to high inflation.

Brent oil fell 2.4 percent. With this decline, it has seen its lowest level since March. it fell 20 percent from its peak level in June. High oil prices in the US reduced consumption, demand fell to its lowest level since 1996 last week. The expectation that the US Federal Reserve will continue its aggressive interest rate hikes to fight inflation triggered the decline in oil. Traders say they expect the Fed to raise interest rates by one point this month. This increases the pressure on Brent Oil and causes a decline. High energy costs remain on the US agenda. US President Joe Biden had previously called on OPEC several times to produce more to lower energy prices. Brent crude oil for September delivery is trading at $ 97.23 a barrel, down 2.4 percent, while US crude oil for August delivery is trading at $ 93.59, down 2.8 percent. "Concerns are growing that high inflation will affect economic growth and oil demand," PVM Oil Associates analyst Tamas Varga commented.