 |
Louisiana Light • 2 days | 82.77 | -0.13 | -0.16% | ||
|
Bonny Light • 18 hours | 84.38 | +0.37 | +0.44% | ||
|
Opec Basket • 2 days | 83.60 | -0.14 | -0.17% | ||
|
Mars US • 187 days | 77.26 | -1.51 | -1.92% | ||
|
Gasoline • 24 mins | 2.538 | +0.006 | +0.24% |
|
Bonny Light • 18 hours | 84.38 | +0.37 | +0.44% | ||
|
Girassol • 18 hours | 85.24 | +0.29 | +0.34% | ||
|
Opec Basket • 2 days | 83.60 | -0.14 | -0.17% |
|
Peace Sour • 17 hours | 71.58 | -0.10 | -0.14% | ||
|
Light Sour Blend • 17 hours | 74.63 | -0.10 | -0.13% | ||
|
Syncrude Sweet Premium • 17 hours | 81.58 | -0.10 | -0.12% | ||
|
Central Alberta • 17 hours | 71.98 | -0.10 | -0.14% |
|
Eagle Ford • 2 days | 74.86 | -0.10 | -0.13% | ||
|
Oklahoma Sweet • 2 days | 75.00 | +0.00 | +0.00% | ||
|
Kansas Common • 8 days | 69.25 | -3.00 | -4.15% | ||
|
Buena Vista • 3 days | 83.20 | +0.37 | +0.45% |
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Oil Sinks to 6 Month Low As Inflation Fears Persist
Crude oil prices dropped sharply on Tuesday, with WTI falling by more than 4 percent as traders appear spooked by the consumer price index, which increased by 3.1 percent from November 2022 to November 2023, The Labor Department said on Tuesday. The CPI rose 0.1 percent from October to November, the most recent data showed.
While inflation fears contributed to falling oil prices, the commodity has struggled to find its footing since OPEC+ disappointed the markets with voluntary production cuts from its members that are set to take place on January 1. Saudi Arabia and Russia account for 1.5 million barrels per day (bpd) of the 2.2 million bpd of cuts—but those cuts were already agreed upon and in place and therefore do not represent additional production cuts. Oil prices sank immediately after the disappointing news, and prices have since failed to recover.
WTI was trading at $68.27 per barrel at 1:50 pm ET, a loss of 4.26% on the day—and the lowest level since June. Prices are now roughly $8 per barrel below where they were before OPEC announced its 2024 plan. Brent crude was trading at $73 per barrel at that time, a loss of 4.1% on the day and also the lowest level since June.
Energy prices fell 2.3 percent in November, according to the Consumer Price Index released today.
The CPI figures are still quite a bit above the Fed’s 2% target. A 2.3 percent dip in energy prices put a lid on inflation, with gasoline falling 6 percent, and fuel oil falling 2.7%. On an annual basis, energy was down 5.4 percent.
Another catalyst for moving oil prices is set to occur later today when the American Petroleum Institute publishes its crude oil and products inventory report.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
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Julianne Geiger
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.
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Open57.81
Trading Vol.6.96M
Previous Vol.241.7B
Anyhow the entire financial media has been pounding the table on unstoppable oil and "know the World! Yemen matters!" is it 90 Years this has been going on for now? Anyhow "now there is this" which should come as a surprise to no one given what I've stated. That no one here has given an honest assessment of what the *USA* economy is doing proves out the facile nature of trying to "divine" price in a World true this to say CONSUMED by War and how US policy shapes matters in order to fight said War(s) *DOMESTICALLY.* (by way of specific example "LOCKDOWNS" which caused the futures price of oil to go negative or have a negative price.
The purpose is to support a stagnating US economy and also help refill the SPR.
OPEC Plus also helped the price decline by announcing unneeded voluntary production cuts thus giving credence to speculators’ and oil traders’ false claims of weak oil demand.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert
The price of oil, like many things is complete detached from reality and a result of manipulation. The US is only producing about 1.2mbpd more than a year ago. That's barely the side of the OPEC decreases, and surely not enough alone to justify the massive drop in price. It is all massive market manipulation for a variety of reasons.