Oil prices eased after Brent crude hit a seven-year high above $90 a barrel, while the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy. U.S. crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory, amid tensions between Russia and the West and threats to the United Arab Emirates from Yemen’s Houthi movement that had added to oil market jitters. The market is starting to turn its attention to a Feb. 2 meeting of OPEC+, likely to stick with a planned rise in its oil output target for March. It has raised its output target each month since August by 400,000 barrels per day (bpd) as it unwinds record production cuts made in 2020.
- Oil dips from seven-year high as Russia tensions offset Fed tightening