WTI Crude Hits $90
September 15, 2023
Crude oil and refined fuel prices closed higher in yesterday’s trading mainly driven by the European Union Central Bank raising rates but implying that they may be close to being done and US retail sales coming in better than expected. Also, supportive for prices, US initial unemployment claims came in lower than expected at just 220,000 new claims. This is bullish for demand but could justify the Fed raising rates.
The IEA Executive Director Fatih Birol said in an op-ed on Tuesday in the Financial Times that demand for fossil fuel would peak in 2030. OPEC said the data-based forecast do not support the IEA projections. OPEC in a statement also said what made the projections “dangerous” is they are often accompanied by call to stop new oil and gas investment. OPEC Secretary General Haitham Al Ghais said “such narratives only set the global energy system up to fail spectacularly.”
US producer prices increased by the most in more than a year in August as the cost of gasoline increased. The Labor Department said the Producer Price Index for the final demand increased 0.7% in August, the largest gain since June 2022.
The consumer price index rose 0.6% in August, it biggest monthly gain of 2023. The inflation gauge rose 3.7% from a year ago.
WTI crude oil traded for $90 dollars and made some headlines. It traded to a high of $90.50 on the day and has the market stirred up about $100-dollar crude oil. I think the market will need some help to trade $100, something like a well place hurricane or other major event.