Crude oil futures closed to a three-week low on Wednesday (Feb. 1) after the U.S. Energy Information Administration (EIA) reported a rise in crude inventories.
- WTI crude futures dropped $2.46, or 3.12%, to settle at $76.41 a barrel.
- Brent crude futures fell $2.62, or 3.07%, to settle at $82.84 a barrel.
The EIA reported that U.S. crude inventories rose by 4.1 million barrels last week, which was 300,000 barrels higher than analysts had predicted. Additionally, crude stocks at the delivery hub in Cushing, Oklahoma rose by 2.3 million barrels. The EIA also reported unexpected increases in gasoline and distillate stocks.
The drop in crude oil prices was also affected by the Federal Reserve’s (Fed) decision to raise short-term interest rates by 0.25% to a range of 4.50-4.75%, which is the highest level since October 2007. The signal to continue raising interest rates due to high inflation also added pressure to the markets.
On the other hand, the Joint Ministerial Committee of the Petroleum Exporting Countries and Allies (OPEC+) decided to maintain its current production cuts of 2 million barrels per day until the end of 2023 at its meeting yesterday. The next meeting of the committee will take place on April 3.
The Spot Market is Open
Thursday, February 2, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 11.55 | 77.23 | +0.82 | +1.07% |