• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 15 hours America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Oil Prices Crumble As Core U.S. Inflation Hits 40-Yr High

  • WTI fell to $86 per barrel on Thursday morning.
  • U.S. core inflation hits a 40-year high.
  • U.S. retail prices for a gallon of gasoline were down on Thursday from Wednesday but are still up from the month-ago levels.

Oil prices fell on Thursday morning following new CPI data that showed core inflation in the United States had risen to the highest level in four decades.

WTI crude prices fell 1.57% to $85.90, while Brent crude fell 1.16% to $91.38 per barrel on the news, which showed CPI came in higher than anticipated, renewing fears that the Federal Reserve could aggressively raise interest rates in November.

That interest rate hike could further stymie economic growth, easing the demand for crude oil.

Core inflation—a measure of price increases excluding food and energy costs—rose 6.6% over the last year—a level not seen since 1982, the US Labor Department shared on Thursday. Total inflation, which includes food and energy, rose 8.2% in September from September 2021. To compare, CPI rose 8.5% in July and 8.3% in August, from the respective year-ago periods.

September’s inflation figures would have been worse had it not been for gasoline prices which fell in the month. The gasoline price index fell 4.9% in September.

“The energy index declined 2.1 percent in September after falling 5.0 percent in August,” the US Labor Department Summary said.

“The gasoline index fell 4.9 percent over the month following a 10.6-percent decrease in August. (Before seasonal adjustment, gasoline prices fell 5.6 percent in September.) However, the index for natural gas increased in September, rising 2.9 percent after increasing 3.5 percent in August. The electricity index also increased over the month, rising 0.4 percent,” adding that the energy index rose 19.8 percent over the past 12 months.

“The gasoline index increased 18.2 percent over the span and the fuel oil index rose 58.1 percent. The index for electricity rose 15.5 percent over the last 12 months, and the index for natural gas increased 33.1 percent over the same period.”

U.S. retail prices for a gallon of gasoline were down on Thursday from Wednesday but are still up from the month-ago levels. On Thursday, gasoline prices averaged $3.913 per gallon, compared to $3.707 per gallon a month ago.

Along with the crude oil price slide on Thursday, US stock futures fell. The dollar and Treasury yields rose.

The inflation numbers portend an aggressive move by the Federal Reserve next month.


By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News