# Oil drops 1.5% as Fed projects more rate hikes this year

> Brent settled $1.09 lower at $73.20 a barrel and WTI closed $1.15 lower at $68.27 after the US Federal Reserve projected more interest rate hikes this year. Higher rates strengthened the dollar and weighed on demand expectations.

- Date: 2023-07-01 · published 2023-07-01T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/35655-oil-drops-1-5-as-fed-projects-more-rate-hikes-this-year
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Rate-driven demand concerns and a firmer dollar pressure crude and dollar-priced commodities, lowering energy-linked feed costs.

## Read by commodity

- DXY: bullish ▲
- WTI: bearish ▼
- BRENT: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-10-04 | [Oil plunges $5 in biggest one-day drop in more than a year](https://feedsoft.ai/events/7360-oil-plunges-5-in-biggest-one-day-drop-in-more-than-a-year.md) | -3.7% | -8.8% |
| WTI | 2022-09-21 | [WTI Falls as USD Spikes to 20-Year High after Fed Rate Hike](https://feedsoft.ai/events/39497-wti-falls-as-usd-spikes-to-20-year-high-after-fed-rate-hike.md) | -6.9% | -1.7% |
| WTI | 2022-06-23 | [Oil prices slump as investors fear Fed rate hikes will hurt demand \| Reuters](https://feedsoft.ai/events/41110-oil-prices-slump-as-investors-fear-fed-rate-hikes-will-hurt-demand-reuters.md) | +4.5% | -8.0% |
| WTI | 2022-01-24 | [Oil falls 2% as Fed rate hike talk spooks risk markets](https://feedsoft.ai/events/43049-oil-falls-2-as-fed-rate-hike-talk-spooks-risk-markets.md) | +2.6% | +7.1% |
| WTI | 2020-02-26 | [Oil prices drop to lowest in more than a year as coronavirus spreads](https://feedsoft.ai/events/7110-oil-prices-drop-to-lowest-in-more-than-a-year-as-coronavirus-spreads.md) | -5.2% | -55.9% |
| BRENT | 2023-10-04 | [Oil plunges $5 in biggest one-day drop in more than a year](https://feedsoft.ai/events/7360-oil-plunges-5-in-biggest-one-day-drop-in-more-than-a-year.md) | -3.8% | -6.0% |
| BRENT | 2022-06-23 | [Oil prices slump as investors fear Fed rate hikes will hurt demand \| Reuters](https://feedsoft.ai/events/41110-oil-prices-slump-as-investors-fear-fed-rate-hikes-will-hurt-demand-reuters.md) | +4.3% | -2.0% |
| BRENT | 2022-01-24 | [Oil falls 2% as Fed rate hike talk spooks risk markets](https://feedsoft.ai/events/43049-oil-falls-2-as-fed-rate-hike-talk-spooks-risk-markets.md) | +2.2% | +6.8% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/oil-prices-dip-after-unexpected-rise-us-crude-stocks-2023-06-14/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.