Oil prices extended losses on Monday as looming increases to interest rates by major central banks and signs of strong Russian exports offset rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
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.
“The risk-off cautious mood in the market ahead of the central bank meetings is hurting risk assets, including oil,” said City Index analyst Fiona Cincotta.
Brent crude fell 94 cents, or 1.1%, to $85.72 a barrel by while U.S. West Texas Intermediate crude dropped $1.40, or 1.8%, to $78.28.
The market also came under pressure from indications of strong Russian supply despite an EU ban and G7…
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