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Did Oil Peak on June 9
[TradingEconomics] WTI crude futures fluctuated around $109 per barrel on Monday, remaining close to their lowest in nearly five weeks [hit $123/bar on June 9] as concerns about slowing global economic growth and fuel demand more than offset expectations of higher near-term consumption and ongoing supply issues. The US oil benchmark tumbled almost 7% just on Friday as worries about the economic fallout from higher interest rates rattled financial markets. Last week, the Federal Reserve led a global wave of monetary tightening by raising its benchmark rate by 75 basis points to combat surging inflation, stoking fears of a possible recession. Meanwhile, US Energy Secretary Jennifer Granholm warned of a continued upward pull on demand over the weekend, and the likelihood of sustained high gasoline prices. Ongoing supply disruptions caused by the war in Ukraine and unrest in Libya, as well as OPEC's failure to pump more oil also continued to support crude prices. All the futures have also declined since June 9, e.g., Dec 2022 WTI is at about $100/bar. It would be at least $10/bar lower except that storage of both gasoline and crude is running about 10% less than average. Posted by: Lord Garth 2022-06-21 |
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