Monday, January 30, 2023

Texas oil falls to its lowest level in years

The price of Texas Intermediate oil (WTI) fell a sharp 3.5% on Tuesday to $74.25 a barrel, its lowest price in years, thus continuing with yesterday’s bump when the latest economic data will be available to investors. There are concerns about the likelihood that the Federal Reserve (Fed) will continue its aggressive policy of adjusting interest rates.

At the end of trading on the New York Mercantile Exchange (Nymex), the WTI futures contract for January delivery fell $2.68 from the previous day’s close.

“The oil market is moving on fears that the Fed will tip the economy into recession,” Phil Flynn, a senior market analyst at The Price Futures Group, told MarketWatch.

The latest economic data released this week showed that the US economy is stronger than expected.

This strength could translate into the option for the central bank to raise interest rates to higher levels than expected and to keep them for a longer period of time.

Investors are looking forward to the weekly US oil supplies report due on Wednesday.

On average, analysts polled by S&P Global Commodity Insights expect the report to show a decline of 2.6 million barrels for the week ending Dec. 2.

In addition, this week a veto on imports of Russian oil transported by ship to the European Union (EU) and a ban on the transport of Moscow crude sold to third countries for more than $60 a barrel came into effect, by Agreed measures were taken. G7 Powers.

With this sanction, the EU seeks to undermine one of the Kremlin’s main sources of income to finance its war in Ukraine.

On the other hand, the natural gas futures contract for January fell 10 cents to $5.46, and gasoline futures for the same month fell 5 cents to $2.14 a gallon.

Nation World News Desk
Nation World News Desk
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