Crude oil prices fall as concerns about rising interest rates could hurt demand

Crude oil prices closed lower on Thursday (June 23). The market was concerned that the Federal Reserve’s (Fed) interest rate hike could plunge the U.S. economy into recession and slow oil demand.

  • WTI crude futures were down $1.92 to close at $104.27 a barrel.
  • Brent crude futures were down $1.69 to close at $110.05 a barrel.

Federal Reserve Chairman Jerome Powell has confirmed to Congress that the Fed is committed to containing inflation, and the Fed is moving swiftly toward that goal.

The Fed has both the tools necessary and the intent to restore price stability for U.S. households and businesses.

Powell stated that the U.S. economy is in a favorable condition, with a strong labor market and high demand.

However, Powell acknowledged that inflation was too high and needed to slow.

In addition, the U.S. government’s Energy Information Administration (EIA) reported yesterday (June 23) that natural gas inventories in the United States increased by 74 billion cubic feet last week.

Total gas inventories were 2.169 trillion cubic feet, down 305 billion cubic feet from a year ago and below the 5-year average of 331 billion cubic feet.

Following the release of this information, the price of natural gas fell 37.2 cents, or -5.4%, to $6.486 per million BTU from $6.638 prior to the release.

The schedule for the publication of weekly U.S. crude oil inventories has been postponed. The EIA stated that this was due to a system problem and had not yet given a new deadline for the report.

The Spot Market is Open

Friday, June 24, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.20

104.29

+0.02

+0.02%

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