Oil Drops Below $90 on Macroeconomic Gloom, High Interest Rates
- US benchmark WTI capped 29% quarterly advance last week
- Citi’s Ed Morse sees Brent retreating to low $70s next year
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Oil fell, with the US benchmark tumbling below $90 a barrel, as worries about further interest rate increases and a slowdown in the economy roiled broader markets.
West Texas Intermediate ended the session below $89 a barrel, reversing course after an earlier increase of 1.2%. The S&P 500 slipped and the dollar rose, with investors awaiting clues about the path of Federal Reserve interest rate policy. Prices held onto losses as Fed Chief Jerome Powell appeared at a roundtable discussion on Monday. Officials have indicated rates are likely to remain high, while JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon sees the possibility of them climbing more.