Oil Falls Below Last Week’s Low, Despite Record Highs in Stock Markets
Today’s inflation figures for November in the US were in line with forecasts, with core CPI remaining unchanged at 4.0% while the headline CPI ticked lower to 3.1%. It wasn’t too bad, but it wasn’t better than expected either. As a result, were a bit shaken earlier, with the USD diping lower immediately after the numbers were published, but then we saw a quick reversal. Crude Oil tumbled lower as WTI fell below $69, with sellers regaining control.
The major US stock indices continue to show bullish momentum, with the S&P, Dow Jones and Nasdaq trading higher after the open as they continue to push to ne record highs. In the US debt market, rates are now trading higher on the day after falling by around six basis points prior to the CPI.
Crude Oil was retracing higher for several sessions after it fell below $70 last week, however, it closed down for the seventh week in a row. But after reaching $72 which is a previous support zone, WTI reversed lower and is set to fall again this week after a $2 drop today. US Crude Oil is down by around $3, or 3.0%, to $68.30s a barrel. The decline essentially wipes out three days of modest gains and comes ahead of weekly private US inventory data due later today and official data due Tomorrow.
OPEC has been seeking to keep the mood upbeat by announcing that they would extend the output curbs into Q1 2024, but the market was not impressed with the voluntary cuts which have been weighing on Oil prices. Besides that, the global economic picture does not bode well for oil buyers. Crude oil imports into China fell by 9% in November. So, WTI Oil broke below last week’s lows and it is heading for $68 now, which is a support zone starting from $66.
US WTI Crude Oil Live Chart
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