Oil prices rise on Federal Reserve rate hikes

Oil prices rose on Thursday after the US Federal Reserve raised interest rates by 25 basis points, sending the dollar lower.

The price of crude LCOc 1 futures rose 56 cents, or 0.7%, to $83.40 a barrel, while the West Texas Intermediate WTI US crude CLc 1 futures rose 65 cents, or 0.8%, to $77.05 a barrel.

The Federal Reserve has continued to promise ongoing increases in borrowing costs as part of its ongoing battle against inflation, as part of its goal interest rate by a quarter of a percentage point on Wednesday.

The US central bank said in a statement that showed that progress has been made in lowering the pace of price increases from the 40-year highs hit last year, but inflation has calmed slightly but remains elevated.

A weaker dollar makes US dollar-priced oil less expensive for holders of other currencies, boosting demand.

The US dollar fell by 0.3% in the session against a basket of currencies, at 101.15.

The European Union has a Feb 5. ban on Russian refined products.

After postponing a decision on Wednesday due to the divisions between member states, the EU countries will try to reach a deal on Friday on a proposal by the European Commission to set price caps on Russian oil products.

The European Commission proposed last week that from February 5th the EU apply a price cap of $100 per barrel on premium Russian oil products such as diesel and a $45 cap per barrel on discounted products such as fuel oil.