Connect with us

Hi, what are you looking for?

The Freedom RightThe Freedom Right

Economy

Oil Dips on U.S. Inflation Spike: Oil prices Falls 0.7%

Oil Dips on U.S. Inflation Spike: Oil prices Falls 0.7%

Oil prices dropped by 0.7%, and WTI crude by 0.5%, as inflation worries rise in the U.S.
U.S. producer prices saw an unexpected jump in January, sparking inflation concerns.
The IEA forecasts a potential surplus in the oil market in 2024, hinting at dampened growth expectations.

Oil prices witnessed a notable dip as the U.S., the largest oil consumer globally, grapples with rising service costs. This uptick in costs has reignited fears of persistent inflation and higher interest rates, potentially curtailing fuel consumption growth. Oil prices fell by 0.7% to $82.92 a barrel. Meanwhile, West Texas Intermediate (WTI) crude oil prices decreased by 0.5% to $78.78.

OPEC’s 6.4M bpd Spare: Balancing Supply Shocks

The direction of the oil market remains uncertain, influenced by several global events that sway investor sentiment. The return of China from the Lunar New Year holiday should subtly impact demand. The upcoming Presidents’ Day in the United States is also expected to affect demand. Additionally, recent tensions in the Middle East have contributed to market volatility. These tensions include Israeli raids and attacks by Yemen’s Houthi fighters. Despite these challenges, analysts from ANZ Research have a positive outlook. They suggest that OPEC possesses adequate spare capacity to manage disruptions. This capacity is approximately 6.4 million barrels per day. It provides a cushion against potential supply shocks.

IEA Sees 2024 Surplus: Oil Demand Growth Slows

As the market navigates through these turbulent times, the International Energy Agency’s (IEA) latest warnings provide a sobering perspective on future demand. The IEA anticipates that growth will decelerate in 2024, with a forecasted surplus potentially dampening the market’s vigour. This outlook, combined with the Federal Reserve’s cautious stance on interest rate adjustments, suggests a bearish trend for oil prices in the near term. Investors and market watchers are thus reminded of the complex interplay between geopolitical events, economic policies, and energy consumption patterns in shaping the global oil market’s future trajectory.

The post Oil Dips on U.S. Inflation Spike: Oil prices Falls 0.7% appeared first on FinanceBrokerage.

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Stock

    A second delivery driver has died in Texas amid record-high temperatures, just as the regulation of workplace heat safety enters a new legal limbo...

    Editor's Pick

    By the IoT Analytics team. A new report from IoT Analytics highlights eight notable trends helping to advance and promote digital twins. Four of...

    Investing

    Vermont Sen. Bernie Sanders, 81, defended President Biden, 80, against voter critiques that he lacks the energy and vigor to continue leading the United...

    Investing

    Political advisers to both President Biden and Vice President Harris were reportedly annoyed with Democrat California Gov. Gavin Newsom over a planned debate with...

    Disclaimer: thefreedomright.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2020-2024 The Freedom Right. All Rights Reserved