Oil falls 2% as Fed rate hike talk spooks risk markets | Reuters

Oil falls 2% as Fed rate hike talk spooks risk markets | Reuters

Oil prices fell about 2% on Monday, hit by investor concerns over the possibility of quicker than expected interest-rate hikes by the U.S. Federal Reserve that took down risk markets such as equities while the dollar rallied.

Wall Street stocks slumped, after last week posting their worst week since 2020, pulling down other risk assets like crude.

"Everything is being taken out to the wood shed and the wood shed is a pretty crowded place," said John Kilduff, a partner at Again Capital Management.

Brent crude fell $1.62, or 1.8%, to $86.27 a barrel, while U.S. West Texas Intermediate (WTI) crude settled down $1.83, or 2.2%, to $83.31.

Both benchmarks rose for a fifth week in a row last week, gaining about 2% to reach their highest since October 2014.