Fed Raises Interest Rate, Oil Prices Slip

Brent crude futures settled down $1.82, or 3.27 percent, at $53.90 a barrel. U.S. crude fell $1.94, or 3.66 percent, to settle at $51.04 a barrel.

Crude prices hit session lows after the Fed raised interest rates by a quarter point and signaled a faster pace of increases in 2017.

A stronger dollar makes oil more expensive for countries using other currencies.

The U.S. Energy Information Administration (EIA) earlier reported that oil stocks at the Cushing, Oklahoma, delivery hub rose for the sixth time in seven weeks.

The Organization of the Petroleum Exporting Countries (OPEC) has warned that oil supply will grow next year unless members implement their deal to cut output.

Without the cuts, the surplus next year could reach 1.24 million barrels per day (bpd), 300,000 bpd higher than previously forecast, OPEC said in a monthly report.

OPEC and 11 other oil producers agreed to cut output by almost 1.8 million bpd.

"But history shows that Russia has a very poor track record of following through on promises it has made when it comes to cooperating with OPEC to cut production. They have really never delivered in the past," said Michael Wittner, global head of oil research at Societe Generale.