Brent crude oil futures dropped about 2% to $87.07 a barrel on Thursday, even as the S&P 500 closed at a record high in the same session. Traders priced in a 63% chance the Federal Reserve holds interest rates steady next month, following softer producer-price data, while separately, tension around the Strait of Hormuz continued.
Brent crude oil futures closed about 2% lower at $87.07 a barrel on Thursday, even as the S&P 500 notched a record-high close in the same session.
Traders are pricing in a 63% chance the Federal Reserve will hold interest rates steady at its meeting next month, according to CME's FedWatch tool. That follows fresh inflation data showing U.S. producer prices were unchanged in July, as goods prices fell while services costs rose only marginally. The number of Americans filing new unemployment claims increased moderately last week, a reading consistent with a stable jobs market.
Meanwhile, Iran and the United States remain at loggerheads over efforts to reach a permanent end to the Iran war, according to a senior Iranian source, while traffic through the Strait of Hormuz stayed severely curtailed.
Source: Investing.com
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