Oil prices closed lower on Monday, February 27, with concerns about the Federal Reserve’s plan to hike interest rates due to stronger-than-expected US economic data. The fear is that this will slow down the economy and lead to a reduction in oil demand.
According to the US Commerce Department, core durable goods orders rose 0.8% in January, above expectations for a 0.1% increase. This has increased concerns that the Fed may raise interest rates by 0.50% at its next meeting.
- WTI crude futures were down 64 cents or 0.84%, to $75.68 per barrel.
- Brent crude futures were down 71 cents or 0.85%, to $82.45 per barrel.
In addition, the suspension of oil exports to Poland by Russia via the Druzba pipeline has added to the decline in crude oil futures. Russia has also announced that it will reduce oil exports from western ports by 25% in March.
Investors are now waiting for the US Energy Information Administration’s crude inventory report, which will be released on Wednesday.
The Spot Market is Open
Tuesday, February 28, 2023