Crude oil closed slightly higher – OPEC production well below target in August

Crude oil futures closed higher Monday (Sept. 19) amid tighter oil supplies. This is because investors are concerned that an accelerated rate hike by the U.S. Federal Reserve (Fed) will plunge the economy into recession and hurt oil demand.

  • WTI crude futures were up 62 cents, or 0.7%, at $85.73 a barrel.
  • BRENT crude futures were up 65 cents, or 0.7%, at $92.00 a barrel.

Crude oil futures rose after it was reported that the group of oil-exporting countries OPEC and OPEC+ produced about 3.583 million barrels of oil per day below target in August. In July, OPEC+ produced about 2.892 million barrels per day of oil below target.

The market remains under pressure from fears that Fed rate hikes will hurt the economy and oil demand. CME Group’s latest FedWatch tool shows that 80% of investors expect the Fed to raise rates by 0.75% to 3.00-3.25% at its September 20-21 meeting.

Investors will be keeping an eye on the weekly crude oil inventory report, which the EIA will release on Wednesday.

The Spot Market is Open

Tuesday, September 20, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
14.40

85.88

+0.15

+0.17%

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