- WTI trades lower at around $113.68/Bbl
- The Fed raised interest rates by 75 basis points in an effort to battle rising inflation
- The dollar index rose to its highest level since 2002 as a result of the largest increase by the U.S. central bank since 1994
- With the dollar strengthening, foreign currency holders pay more for oil priced in dollars, which curtails demand
- Last weekend, national retail gasoline prices surpassed $5/gal for the first time (BBG)
- The oil market is battling a trifecta of strong demand growth, disruptions in the crude supply, and rising fuel costs as a result of a lack of refining capacity
- “The markets moved faster and the fundamental tightness is deeper than what we would have thought three or six months ago,” said Jeff Currie, head of commodities research at Goldman Sachs