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Commodities
26 Jan 2022
Oil Tumbles after Investors Lock in Profits amid Anticipation of Fed Policy Update
The Index Today
Oil prices took a tumble on Wednesday after investors locked in profits prior to the upcoming update on the Fed monetary policy following their two-day meeting. However, limited supplies informed by rising geopolitical tensions between Russia and Ukraine helped to curb further losses.
Brent crude futures dropped by 0.4% to $87.88 per barrel at 0513 GMT. U.S. West Texas Intermediate (WTI) crude futures also dipped by 0.5% to $85.15 a barrel.
Tsuyoshi Ueno of NLI Research Institute said, "Investors locked in profits just in case of a collapse in global share prices following the Fed's update on its monetary policy."
The Fed is expected to provide an update on its monetary policy on Wednesday at 1900 GMT, following the conclusion of its two-day meeting. Investors are anticipating an earlier-than-expected interest rate hike due to come into effect in March with additional three hikes set to be implemented this year.
