You’ll never guess what happened to oil prices today. If you guessed that they fell, you’d be right. Granted, the overall outlook for oil is good considering the weekly progress made and the caps placed by supply woes in the U.S., but, nevertheless, the prices themselves were down, throwing off a multi-year touchstone.
Brent crude futures were down 52 cents, or 0.7%, clocking in at $72.56 a barrel. The day before yesterday, though, Brent notched its biggest increase since 2018.
U.S. West Texas Intermediate (WTI) crude futures fell 48 cents, or 0.7%, at $70.56 a barrel, after declining 1.5% on yesterday
The potential for rate hikes in the wake of the latest Fed meeting (which drove the dollar to new heights for the last 2 sessions) also provided drag on the longer-term growth perspective.
“The near term’s all very positive. The question is how much further can it rise, how much scope is there if you’re looking at an environment where interest rates are going to rise,” economist Justin Smirk said.
Oil was deeply affected by the newest rise in COVID cases coming from Britain. Health officials in the UK reported the highest cases number since February 2021, and this has hurt prospects and demand across the UK. MetaNews couldn’t reach Prime Minister Johnson for comment, but numbers are increasing as we monitor the commodities markets simultaneously.
The Iranian Nuclear deal seems also to have been revived, if comments from certain experts are to be believed. Certainly, this has impacted sentiments throughout the region and on an international scale concerning oil and other markets.
“Renewed negotiations have sparked concerns that this would lead to the U.S. removing sanctions, resulting in a flood of oil hitting the market,” ANZ Research analysts said in a client note. You’ll never guess what happened to oil prices today if you haven’t been keeping up with us.