Energy Prices Slump Against Resilient Inflation Pressure
September 14, 2022
Energy prices fell in yesterday’s trading and US equities markets had a sharp selloff. The markets were pressured by rise in invention for August which was above expectations. The energy markets started the day higher on continue concerns about tight supplies but after the CPI report was released and the core CPI was higher market sold off. The higher inflation also pushed the US dollar index higher and that pressured crude oil prices lower.
OPEC+ published a monthly report and did not change from last month their global oil demand growth forecast of 3.1 million bpd for 2022 and 2.7 million bpd or 2023.
Morgan Stanley cuts its oil price forecast for Q4 2022 from $100 to $95 for Brent crude oil and from $97.50 to $91 for WTI crude oil.
The API inventory report released yesterday called crude stocks up 6 million barrels, gasoline stocks down 3.2 million and distillate stocks up 1.8 million barrels.
Bloomberg reported that the US may begin refilling its SPR when crude prices fall below $80 per barrel.