Investors expect the U.S. Federal Reserve to raise rates by 25 basis points on Wednesday, followed the day after by half-point increases by the Bank of England and European Central Bank. Any deviation from that script would be a shock.
“We’re seeing a ‘risk back off’ sentiment from the past two weeks’ rally on ideas that higher interest rates may slow demand more quickly,” said Dennis Kissler, senior vice president of trading at BOK Financial.
Brent futures for March delivery fell $1.76, or 2.03%, to $84.90 a barrel. U.S. crude fell $1.78 to $77.90 per barrel, a decline of 2.23% – its steepest decline in nearly four weeks.
The market also came under pressure from indications of strong Russian supply despite a European Union ban and G7 price cap imposed over its invasion of Ukraine. Both oil benchmarks last week registered their first weekly loss in three.
Besides the central bank meetings, a gathering on Wednesday of key ministers from the…
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