Oil Rally Ends as US Stockpiles Fall
by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil slipped from a three-month high as US crude stockpiles fell less than anticipated and traders assessed the Federal Reserve’s interest rate hike.
West Texas Intermediate slipped below $79 a barrel as stockpiles declined only 600,000 barrels. However, losses were limited as inventories at the nation’s largest storage hub continue to hover at the lowest since May. Technicals also capped crude’s recent gains as oil settled in overbought territory on its nine-day relative strength index for a second day on Tuesday.
Crude’s rally in recent sessions has been fueled by strength in equity markets, signs that the global crude market is starting to tighten and moves by China’s leadership to revive economic growth.
Oil has pushed higher in July as supply cuts from OPEC+ heavyweights Saudi Arabia and Russia help drain global inventories. That move has offset the drag from Federal Reserve Chair Jerome Powell’s campaign of monetary tightening, which saw interest rates increase on Wednesday to the highest in 22 years.
Yet even as inflation is seen cooling, the price of gasoline is starting to surge globally. Futures soared to a nine-month high in New York, sending shockwaves through to the pump as motor fuel markets have tightened worldwide. The resurgence in gasoline potentially poses a headache for central banks as policymakers grapple with the problem of how much more monetary tightening is needed to bring inflation to heel.
Prices:
- WTI for September delivery fell 85 cents to settle at $78.78 in New York.
- Brent for September settlement was down 72 cents to settle at $82.92 a barrel.
by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas