WTI crude futures closed higher on Thursday (Feb. 10), driven by a drop in U.S. crude inventories last week. Yet, markets were pressured by fears that the Federal Reserve (Fed) may accelerate its rate hikes to curb inflation. After the consumer price index in the U.S. reached its highest level in 40 years.
- WTI crude futures were up 22 cents, or 0.3%, at $89.88 a barrel.
- BRENT crude futures fell 14 cents, or 0.2%, at $91.41 a barrel.
Initially, WTI crude futures rose above $91 per barrel in response to the EIA report that showed U.S. crude inventories unexpectedly fell by 4.8 million barrels last week.
Later, WTI fell below $90 again. Market participants began to worry that the Fed might accelerate rate hikes as the Consumer Price Index, a measure of consumer price inflation, rose 7.5% in January from a year earlier. That’s the highest level since February 1982.
Investors continue to monitor progress in talks on the Iran nuclear agreement. Reuters reports that progress in the talks on the nuclear agreement, Iran could again participate in world oil exports and increase supply by 1 million barrels per day. This would increase oil supply on the world market by about 1% and could put pressure on oil prices.
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Friday, February 11, 2022