Brent Oil Dropped to $105.84, Fed Hawkish Expectations Create Pressure

The November futures price of Brent oil, which reached $109.68 the previous day and finished the day at $107.63, dropped by 1.6 percent to $105.84 yesterday. The barrel price of WTI crude oil for October delivery was 100.97 dollars. While supply disruption concerns in the Middle East kept prices high, the fact that producer inflation in the USA exceeded expectations strengthened hawkish expectations about the US Federal Reserve (Fed). The possibility of a 25 basis point interest rate increase next week increased to 72 percent and the strengthening of the dollar put downward pressure on oil. On the other hand, developments around the Red Sea and the Strait of Hormuz limit the decline.

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