Oil futures settle lower as ‘hot’ inflation data raise likelihood of higher U.S. interest rates

Oil futures settled lower on Tuesday, with Federal Reserve policy expectations “dominating the price action,” said Tyler Richey, co-editor of Sevens Report Research. The “hot” CPI print brought a 100-basis-point rate hike into play at the September meeting, he said. A more aggressive Fed in the months ahead, “will choke off growth and ultimately weigh on broader consumer demand, including demand for refined products,” said Richey. October WTI crude fell 47 cents, or 0.5%, to settle at $87.31 a barrel on the New York Mercantile Exchange.

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