Oil falls more than $3 after Russia resumes gas supplies to Europe

Crude oil futures closed more than 3% lower on Thursday (July 21) following reports that Russia has resumed gas supplies to Europe via the Nord Stream1 pipeline. The strong interest rate announcement could affect oil demand

  • WTI crude futures fell $3.53, or 3.5%, at $96.35 a barrel.
  • BRENT crude futures were down $3.06, or 2.9%, at $103.86 a barrel.

Yesterday, Russia resumed the supply of natural gas to Europe via the Nord Stream 1 pipeline. There had previously been fears that Russia would not supply gas to Europe even after the annual maintenance work had been completed.

The Nord Stream 1 pipeline supplies more than a third of Russian gas to Europe. Annual maintenance work has been underway since July 11 and is scheduled to be completed on July 21.

On the central bank side there was also news. The ECB announced a 0.50% interest rate hike at its meeting yesterday. It was the first rate hike in 11 years and the largest rate hike since 2000 to avert a surge in inflation.

U.S. gasoline inventories, which rose by 3.5 million barrels last week, also pressured crude futures, as did reports that Libya had resumed crude production after suspending exports last week.

The Spot Market is Open

Friday, July 22, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.15

97.21

+0.86

+0.89%

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