Global oil prices fell due to inflation concerns

Oil prices plunged on Thursday after the United States said it was looking to reduce energy costs amid a broader surge in inflation, as the U.
S.
reported on November 11 in New York
.

Brent crude and U.
S.
crude futures ended the session sharply lower as traders dumped risky assets
, including stocks and commodities, driven by expectations that central banks would take steps to curb higher prices.

U.
S.
prices rose 6.
2 percent from a year earlier, the fastest pace in 30 years, according to consumer inflation data released on Wednesday, which could prompt the White House and the Federal Reserve to take action to curb inflation
.
This boosts the dollar, which usually moves in the opposite
direction of oil.

Brent crude futures settled down $2.
14, or 2.
5 percent, at $82.
64 a barrel
.
The contract hit a high of $85.
50 during the session before retreating
.
U.
S.
crude fell $2.
81, or 3.
3 percent, to $81.
34 after hitting a high of $84.
97 a barrel and slightly below a seven-year high hit in the past few weeks
.

Phil Flynn, senior market analyst at Price Futures Group, said there was no doubt that the government was under more pressure
after the inflation data was released.
There is growing concern that the Fed may have to take a more aggressive approach to raising interest rates, so the dollar will rebound
.

Inflation is heating
up as the drag on the economy from the summer pandemic recedes, supply bottlenecks persist.
The Fed is expected to work hard to stop prices from continuing to rise, which will last longer
than initially expected.

That triggered a rally in the dollar, pushing down oil prices, as oil is mostly traded in dollars, which raises costs
in other countries.