On Mobile? Click here to download the PDF
Oil prices fell again today extending yesterday’s steep losses as the market fretted on economic woes. The Fed raised interest rates today by another quarter point but indicated a pause on any future rate hikes while they reassess the market, the fallout from recent bank failures, and the political standoff over the debt ceiling. “The Fed going into a pause mode should be very supportive for the price of oil,” said Phil Flynn, an analyst at Price Futures Group. “The big question is whether or not we’re going to have more shoes drop in the banking sector.” Pressuring prices, gasoline inventories rose by 1.7MM/bbls last week, despite a 1.2MM/bbl drop expected. Crude inventories fell by 1.3MM/bbls compared to a forecasted 1.1MM/bbl drop. WTI traded down $3.06 or -4.3% to close at $68.60. Brent traded down $2.99 or -4% to close at $72.33.