Crude fell more than $3 a barrel on concerns about rising U.S. interest rates and demand prospects

International crude oil futures fell more than 3% on Thursday (Nov.
17) as hawkish comments from Fed officials undermined market expectations
that the Fed would slow its interest rate hikes.
The dollar rose and stocks fell, reflecting investors' weakening
risk appetite.
Concerns about China's demand outlook have also weighed
on the market.

By the close, the West Texas Intermediate (WTI) December contract, the most actively traded on the New York Mercantile Exchange (NYMEX), was down $3.
95, or 4.
6 percent, at $81.
64 a barrel, its lowest close since Sept.
30
.

Brent crude futures, the global benchmark, for January ended down $3.
08, or 3.
3 percent, at $89.
78 a barrel, the lowest close since Oct.
3
.

Both contracts posted their biggest one-day drop since Sept.
23 on Thursday
.

Dennis Senior Vice President of BOK Financial? Giesler said the market was hit
by a combination of punches.
U.
S.
interest rates are expected to rise, cases are rising in top importers, while crude falls below key support and technical weakness
.

On Thursday (November 17), the head of the Federal Reserve's St.
Louis branch, James Bush? Bullard said interest rates need to rise to at least 5 to 5.
25 percent to curb inflation near 40-year highs; A stricter rate hike policy will result in interest rates exceeding 7%.

The dollar has also risen, with a strong dollar making dollar-denominated crude more expensive
for buyers holding other currencies.

Demand concerns are also putting pressure
on the market.
Earlier this week, the International Energy Agency (IEA) lowered its forecast
for global crude oil demand growth next year.
The severe epidemic situation in the number one crude oil importer is responsible, which also puts potential pressure
on the market.

Chinese refiners have reportedly asked Saudi Aramco to reduce their crude supplies in December, while also slowing purchases of Russian crude
.

From a technical point of view, the recent contract for U.
S.
WTI crude oil has fallen below the 50-day moving average support, triggering a long liquidation and sell-out
.
Technical pressure could continue into next week
.

Price Futures analyst Phil? Fryan said the market is worried about the destruction of demand and the loss of
popularity.

Waning geopolitical concerns have also helped squeeze out the risk premium for crude oil prices
.
Poland and NATO said on Wednesday that a missile that crashed in a village near the Ukrainian border in the country could have come from a stray bullet fired by a Ukrainian air defense system rather than a Russian missile strike, helping to ease fears of a major escalation in the Russian-Ukrainian war
.

At the same time, tighter crude oil supplies later this year limit the downside
in oil prices.
U.
S.
crude inventories fell by 5 million barrels in the latest week, more than the market expected
, according to the U.
S.
Energy Information Administration.

The OPEC alliance cut its official output target by 2 million b/d in November, while the EU embargo on Russian crude and refined products in early December and in February could help potential support for oil prices
.

WTI crude is down 5.
65 percent so far this month, narrowing its year-to-date gains to 8.
5 percent, and closed Thursday up 3.
33 percent
year-on-year.
Brent crude is down 5.
33% so far this month, up 15.
43% year-to-date, and closed Thursday up 10.
51%
year-on-year.
Both benchmark contracts rose more than 50% in 2021 as demand grew
due to tight supply.