Crude oil prices tumbled Tuesday amid widespread expectations the Federal Reserve will raise interest rates and signal further monetary policy tightening is imminent.
The Fed makes its latest interest rate announcement tomorrow afternoon.
WTI light sweet oil was down 85 cents, or 1.5%, to settle at $57.14/bbl.
Also denting oil prices, the Energy Information Administration said it expects U.S. crude production to rise by an average of 800,000 barrels a day next year.
The EIA now anticipates U.S. oil prices could average $57 a barrel in 2018, about $2 per barrel higher than its previous forecast.
Producer prices in the U.S. increased by slightly more than expected in the month of November, according to a report released by the Labor Department on Tuesday.
The Labor Department said its producer price index for final demand climbed by 0.4 percent in November.
More importantly, excluding food and energy prices, the core producer price index rose by 0.3 percent in November after climbing by 0.4 percent in October.
Consumer price figures are out tommorow morning, followed by the Federal Reserve’s interest rate decision at 2pm ET.
The material has been provided by InstaForex Company – www.instaforex.com
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