Oil closes lower; Brent slips below $90

Oil drilling rigs

Oil prices settled lower today, Sept. 21, after the US Federal Reserve decision on interest rates and the concern about the global economic recession.

The Federal Reserve decided to raise the US interest rate by 75 basis points for the third meeting in a row, expecting the interest rate to reach the level of 4.6% next year, exceeding the previous estimates of 3.8%.

The Federal Reserve cut its forecast for US economic growth in the next two years, with expectations of only 0.2% growth this year, compared to a previous estimate of 1.7%.

Meanwhile, the US Energy Information Administration data released today showed that oil inventories rose by 1.1 million barrels in the week ended Sept. 16. This was below expectations of an increase of two million barrels.

Oil prices rose by more than 3% earlier in trading, after Russian President Vladimir Putin ordered a partial military mobilization to keep the lands occupied by his forces in Ukraine.

Brent crude futures settled 79 cents, or 0.8%, lower at $89.83 a barrel, after recording $93.50 during trading. US West Texas Intermediate (WTI) crude fell $1.00, or 1.2%, to $82.94, down from intra-day high of $86.68.