Oil prices fell in early Asian trade in light of the US Federal Reserve's decision to raise interest rates significantly to control inflation.
According to Reuters, Brent crude futures fell 16 cents, or 0.2%, to $ 89.67 a barrel, while West Texas Intermediate crude futures fell 15 cents to $ 82.79 a barrel.
On Wednesday, the US Federal Reserve's Open Market Committee decided to raise the federal funds rate by 75 basis points to a range between 3% and 3.25%, the highest level since early 2008.
The decision came within the strict policy approach adopted by the US Central Bank to confront record inflation rates.
Policy makers also noted that by early 2023, they expect rates to be much higher than they were projected in June.
The Fed's rate hike followed a government report last week that showed higher costs were more widely spread across the economy, with hikes in rents and other services exacerbating even though some of the pre-inflationary drivers, such as gas prices, eased.
Risky assets such as stocks fell after this hike and so did oil, while the dollar jumped to a 20-year high against a basket of currencies, which made crude oil more expensive for buyers who do not use the US currency.
