Crude oil rises slightly after lower-than-expected U.S. inflation figures

Crude oil futures closed higher on Thursday (Nov. 10), helped by a weakening dollar and expectations that the U.S. Federal Reserve (Fed) will slow interest rate hikes after lower-than-expected inflation figures from the U.S.

  • Brent crude futures were up 23 cents, or 0.3%, to $93.80 a barrel.
  • WTI crude futures were up 28 cents, or 0.3%, to $86.75 a barrel.

So far this week, WTI has fallen more than 6%, while Brent has lost almost 5%.

Crude oil futures were supported by the weakness of the dollar. The dollar index fell against the six major currencies in a basket of currencies by 2.12% to 108.2040.

The weakening of the dollar has meant that crude oil contracts settled in dollars are becoming cheaper for investors holding other currencies.

Markets also reacted positively to expectations that the Fed would slow interest rate hikes after the U.S. consumer price index (CPI) came in lower than expected. This is an indication that U.S. inflation has passed its peak.

The U.S. Labor Department reported that the CPI, which includes food and energy, rose 7.7% year over year in October, compared with 8.2% in September.

The core consumer price index (excluding food and energy) rose 6.3% year-on-year in October, down from 6.6% in September.

The market continues to be pressured by concerns over the spread of COVID-19 in China’s major economic zones, including Beijing. The situation raised concerns that China may increase its stringent measures to combat COVID-19, which would impact economic activity and oil demand.

The Spot Market is Open

Friday, November 11, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.25

86.76

+0.29

+0.34%

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