BANGKOK - OIL prices dropped below US$124 a barrel yesterday in Asia, as demand concerns deepened and after United States Federal Reserve chairman Ben Bernanke indicated that more US interest rate cuts were unlikely.
Mr Bernanke’s comments suggesting inflation was too much of a concern to contemplate more rate hikes sent the US dollar higher and raised questions about oil’s ability to reach new highs in the short term.
He signalled that the Fed was inclined to leave rates where they were for now, but some analysts said he might be taking a step towards an eventual rise in rates later this year or early next year.