Oil prices gained again today along with other financial markets as inflation unexpectedly fell in December. The CPI dipped .1%, suggesting inflation could now be on a downward trend. Positive CPI data also pushed the USD to a 9-month low against the Euro as the Fed is expected to be less aggressive going forward with rate hikes. “The market was looking forward to the CPI data and the strong possibility the number would spawn a slide in the dollar, with the reverse correlation super-sizing the bid in crude oil,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude Oil is now feasting on the weak dollar.” Also buoying prices is China’s re-opening of its economy which has been effectively shut down since early 2020. WTI was up $.98 or 1.3% to close at $78.39. Brent traded up $1.36 or 1.7% to close at $84.03.

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