Oil prices fall after US Fed chair warns of economic pain ahead | Reuters

Oil prices fall after US Fed chair warns of economic pain ahead | Reuters

Oil prices fell on Friday, after the head of the U.S. Federal Reserve warned there is no quick cure for inflation, while talk of a hefty European Central Bank rate hike also stoked demand worries.

The U.S. economy will need tight monetary policy "for some time" before inflation is under control, a fact that means slower growth, a weaker job market and "some pain" for households and businesses, U.S. Federal Reserve Chair Jerome Powell said. read more

Oil futures, along with Wall Street's main stock indexes, fell after the remarks.

"The market is taking (Powell) at his word," said Phil Flynn, an analyst at Price Futures group in Chicago. "The stock market has given up its gains and I think oil was very concerned about it."

Brent crude futures declined51 cents to $98.83 a barrel by 11:01 a.m. EDT (1501 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 86 cents to $91.66 a barrel.