Fed rate hike 75 basis points + weak demand Crude oil fell to a two-week low

Crude oil futures fell to a two-week low
after the Federal Reserve raised interest rates with the sharpest hike in nearly 30 years and the US government report showed signs of declining demand.
WTI crude oil futures for July ended down $3.
62, or 3.
04 percent, at $115.
31 a barrel, closing below
$116 a barrel for the first time in two weeks.
Brent crude for August delivery closed down $2.
66, or 2.
20 percent, at $118.
51 a barrel
.

On June 15, local time, the Fed announced a 75 basis point interest rate hike to curb soaring
inflation.
It was also the Fed's biggest rate hike since 1994
.
A rate hike could lead to an economic slowdown and add resistance
to the recent rise in oil prices.

U.
S.
retail gasoline prices have hit new highs, recently reaching $
5 a gallon.
The latest U.
S.
government report shows signs that high oil prices are affecting consumption
.
This week, gasoline demand fell to its lowest seasonal level since 2013, but excluding 2020, when demand fell due to Covid
lockdowns.

Rebecca Babin, senior energy trader at CIBC Private Wealth Management, said: "Anxiety is growing under the bull market rhetoric, and every data will be scrutinized for evidence
of declining demand.
" "This makes the market vulnerable to sharp rises and downs because investors are at risk
.
"

High fuel prices are increasingly becoming a political issue
.
Several efforts by the U.
S.
government to reduce energy costs have so far failed to stem the tide of
inflation.
US President Joe Biden sent a letter to US refiners, calling record profits "unacceptable.
"

The Russia-Ukraine conflict has exacerbated inflation
.
The International Energy Agency (IEA) noted in its monthly report that oil supplies next year will struggle to meet demand, and there is little hope of improvement
.