Oil Has Its Worst Week in Months as Hormuz Talks Heat Up and the Fed Signals Rate Hikes

TLDR

• Brent crude settled at $89.31 a barrel, down 0.43%, while WTI finished at $83.40, down 0.16%
• Both benchmarks fell more than 4-5% for the week
• New Fed Chairman Kevin Warsh hinted at a possible rate hike later this year to fight inflation
• Rumors of a potential deal to reopen the Strait of Hormuz put downward pressure on prices
• Oil flows through the strait remain choppy, with only seven vessels transiting on Thursday versus 17 the day before

Oil prices ended Friday lower, capping a tough week for crude markets as traders weighed signals from the Federal Reserve and growing talk of a deal to reopen the Strait of Hormuz.

Brent crude settled at $89.31 a barrel, falling 39 cents or 0.43%. West Texas Intermediate finished at $83.40 a barrel, down 13 cents or 0.16%. For the week, Brent dropped more than 5% and WTI fell more than 4%.

Fed Rate Hike Fears Add Pressure

New Federal Reserve Chairman Kevin Warsh signaled a possible interest rate hike later this year to bring inflation under control. That news pushed oil prices lower, according to Phil Flynn, senior analyst at the Price Futures Group.

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