Oil prices fall after hotter-than-expected U.S. inflation report-Xinhua

Oil prices fall after hotter-than-expected U.S. inflation report

Source: Xinhua| 2022-09-14 04:22:46|Editor:

NEW YORK, Sept. 13 (Xinhua) -- Oil prices declined on Tuesday, driven by a hotter-than-expected U.S. inflation report.

The West Texas Intermediate for October delivery decreased 47 cents, or 0.5 percent, to settle at 87.31 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 83 cents, or 0.9 percent, to settle at 93.17 dollars a barrel on the London ICE Futures Exchange.

The above market reactions came as high U.S. inflation increased the likelihood for another big rate hike from the Federal Reserve, which could subdue demand for energy.

The U.S. Labor Department reported Tuesday that the country's consumer price index (CPI) rose 0.1 percent in August for an 8.3 percent year-on-year increase. The core CPI, which excludes food and energy, rose 0.6 percent for a 6.3 percent year-on-year increase. The readings were higher than market expectations.

The U.S. dollar rallied following the release of the inflation report. The dollar index, which measures the greenback against six major peers, soared 1.37 percent to 109.8150 in late trading on Tuesday. Historically, the price of oil is inversely related to the price of the U.S. dollar.