U.S. oil futures settle lower as Fed rate hike feeds worries about a recession

Oil futures declined on Wednesday, with U.S. benchmark prices settling down by more than 1%. The Federal Reserve said Wednesday that it would raise its benchmark federal-funds rate by 0.75 percentage point, and said rates are going to move sharply higher before the end of the year. “Higher rates are restrictive in nature, and likely to become a headwind on consumer spending including that on refined products like gasoline and diesel,” said Tyler Richey, co-editor at Sevens Report Research. However, “today’s Fed announcement is not a bearish game changer for the oil market, and we are continuing to look for oil to find a bottom here in the upper $70s to low $80s range, as the still fluid fundamental backdrop is reassessed in real time.” November WTI crude CLX22, -0.75% fell $1, or 1.2%, to settle at $82.94 barrel on the New York Mercantile Exchange.