• 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
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Oil Prices Gain On Optimistic U.S. Inflation Data

  • Slowing U.S. inflation provides an impetus for oil.
  • Lower gasoline prices contributed to a lower CPI figure.
  • The annual inflation rate in December 2022 was the slowest since October 2021.

Oil prices are trading up Thursday following the release of U.S. inflation data for December, showing a continued slowdown in the Consumer Price Index (CPI) climb and an annual inflation rate that was the slowest since October 2021. 

The CPI-U (the price index for All Urban Consumers) declined 0.1% in December on a seasonally adjusted basis, following a 0.1% increase in November, according to the U.S Bureau of Labor Statistics (BLS).

The CPI-U has increased 6.5% before season adjustment for the last 12 months; however, this was the smallest 12-month increase since the period ending October 2021.

The December decrease is largely due to the index for gasoline, which offset other increases. The food index saw a 0.3% increase over December, while the energy index saw a 4.5% decrease for the same time period. Within the energy index, gasoline declined while other components increased, the BLS noted.

What economists are largely tuned into with this data is the consumer price index less food and energy, which provides a more accurate reading of “underlying price trends”, according to the New York Times

The BLS shows that the particular inflation figure increased 5.7% in December, YoY, down from 6% in November. 

The inflation data is optimistic and lends impetus to oil prices. 

Oil prices started trading higher ahead of the inflation data, gaining as much as 3% late on Wednesday, also buoyed by optimism over China’s reopening–despite the uncertainty surrounding new infection rates and deaths. 

By Thursday morning, some of those gains had been trimmed, with Brent crude trading up 1.37% at $83.80 per barrel on the day as of 10:32 a.m. EST, and WTI trading at $78.34, up 1.20% on the day. 

By Charles Kennedy for Oilprice.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on January 12 2023 said:
    The decline of US inflation lends impetus to oil prices and global demand as it means that the US Federal Bank may need less hikes of the interest rates which raise the value of the dollar against other major currencies and depress the demand for oil.

    This will bolster the huge bullish factor of China’s return to the global oil market after the lockdowns have been eased considerably.

    Therefore, Brent crude could be projected to hit $100 during the first or second quarter of 2023.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
  • George Doolittle on January 12 2023 said:
    Long slb strong buy

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