Brent trades below $55 as sell-off continues amid Fed rate hike
Oil prices continued to fall on Thursday, with Brent crude breaking through $55 levels in response to the US Federal Reserve opting to raise rates for the fourth time this year.
Brent crude slid 3.2% in the early hours of trading on Thursday, while the West Texas Intermediate (WTI) following suit, falling 3.9% to hit $46.30 a barrel.
October highs vanish
Oil prices have seen their October highs, with Brent crude hitting a high of $86.29 a barrel, completely disappear in the final quarter of the year.
In fact, in the last 11 weeks, Brent crude has fallen 36.5% with ongoing oversupply concerns, global economic cooling and most recently the US interest rate hike helping to erode gains made earlier in the year.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets