Crude oil futures closed lower Thursday (Jan. 13) as traders took profits after a two-day rally in oil prices. Markets were also under pressure from Federal Reserve officials encouraging faster rate hikes to curb inflation.
- WTI crude futures were down 52 cents, or 0.6%, at $82.12 a barrel.
- BRENT crude futures were down 20 cents, or 0.2%, at $84.47 a barrel.
The rumor that the Fed will probably raise interest rates faster than previously planned is supported mainly by the inflation figures that were published this week. CPI rose to a historic 7%, PPI also showed a high increase of 9.7%. Now also the statements of the Fed representatives become more aggressive. Lael Brainard said to the Senate Banking Committee: “We are seeing the strongest rebound in growth and decline in unemployment of any recovery in the past five decades. But inflation is too high, and working people around the country are concerned about how far their paychecks will go.” She added that the Fed has the necessary weapons to fight inflation.
The market was also pressured by a report from the U.S. Energy Information Administration (EIA), which showed that U.S. gasoline inventories rose by 8 million barrels, while distillates stocks increased by 2.5 million barrels.
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Friday, January 14, 2022