Crude oil futures closed at a two-week low on Thursday, with negative territory being the norm for the third consecutive day. The decline has been attributed to investors’ fears of aggressive interest rate hikes by the Federal Reserve (Fed) and their potential impact on the economy and demand for oil.
- WTI crude futures fell by 1.2% or 94 cents, closing at $75.72 a barrel, the lowest since February 27th this year.
- BRENT crude futures fell by 1.3% or $1.07, closing at $81.59 a barrel, the lowest since February 22nd.
The oil market continued to experience pressure due to concerns about the Federal Reserve’s push to raise interest rates. Fed Chairman Jerome Powell stated that the latest US economic data is stronger than expected, suggesting that the Fed’s terminal rate will be higher than previously anticipated. If the data suggests that the Fed should tighten monetary policy faster, the Fed will speed up raising interest rates.
Despite this, crude oil futures received some support after Total Energies, a company that couldn’t deliver oil from the refinery yesterday, announced that it had been affected by a strike of French workers.
Furthermore, the market gained momentum after the US Energy Information Administration (EIA) reported that US crude inventories fell by 1.7 million barrels last week, instead of the 700,000 barrel increase expected by analysts.
Investors remain wary of the impact that the Fed’s monetary policy decisions will have on the demand for oil. The ongoing labor strikes in France are also affecting the market. While the recent decrease in US crude inventories provides a glimmer of hope, investors will be keeping a close eye on future developments.
The Spot Market is Open
Friday, March 10, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 12.10 | 75.13 | -0.59 | -0.78% |