{"id":22083,"date":"2023-06-13T13:23:44","date_gmt":"2023-06-13T17:23:44","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/u-s-global-oil-prices-settle-at-lowest-since-late-2021-ahead-of-this-weeks-fed-decision\/"},"modified":"2023-06-13T13:23:44","modified_gmt":"2023-06-13T17:23:44","slug":"u-s-global-oil-prices-settle-at-lowest-since-late-2021-ahead-of-this-weeks-fed-decision","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=22083","title":{"rendered":"U.S. global oil prices settle at lowest since late 2021 ahead of this week\u2019s Fed decision"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002164054\" role=\"document\">\n<p>Oil futures fell Monday, pulling global benchmark Brent crude prices down to their lowest finish since December 2021, with the outlook for energy demand a key focus ahead of a two-day U.S. Federal Reserve policy meeting this week. <\/p>\n<h2>Price action<\/h2>\n<ul class=\"articleList\">\n<li>\n      August Brent crude<br \/>\n        BRN00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209704782\/delayed\" class=\"positive\">+3.44%<\/bg-quote><\/p>\n<p>        BRNQ23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209705493\/delayed\" class=\"positive\">+3.44%<\/bg-quote><span>,<\/span><br \/>\n       the global benchmark, declined by $2.95, or 3.9%, to settle at $71.84 a barrel on ICE Futures Europe, for the lowest front-month contract settlement since Dec. 20, 2021, according to Dow Jones Market DAta.<\/p>\n<\/li>\n<li>\n      West Texas Intermediate crude for July delivery<br \/>\n        CL.1,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211629951\/delayed\" class=\"positive\">+3.41%<\/bg-quote><\/p>\n<p>        CL00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209723049\/delayed\" class=\"positive\">+3.41%<\/bg-quote><\/p>\n<p>        CLN23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209725418\/delayed\" class=\"positive\">+3.41%<\/bg-quote><br \/>\n       fell $3.05, or nearly 4.4%, to settle at $67.12 a barrel on the New York Mercantile Exchange, for the lowest finish since March 17.<\/p>\n<\/li>\n<li>\n      Back on Nymex, July gasoline<br \/>\n        RBN23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215376520\/delayed\" class=\"positive\">+2.85%<\/bg-quote><br \/>\n       fell 4.3% to $2.48 a gallon, while July heating oil<br \/>\n        HON23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215376439\/delayed\" class=\"positive\">+3.09%<\/bg-quote><br \/>\n       lost 2.2% to $2.31 a gallon.<\/p>\n<\/li>\n<li>\n      July natural gas<br \/>\n        NGN23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210191117\/delayed\" class=\"positive\">+2.65%<\/bg-quote><br \/>\n       climbed by 0.5% at $2.27 per million British thermal units.<\/p>\n<\/li>\n<\/ul>\n<h2>Market drivers<\/h2>\n<p>Brent crude saw the lowest close in about a year and a half on Monday, and U.S.\u00a0crude-oil prices once again dropped below $70.<\/p>\n<div class=\"paywall\">\n<p>The dip below that key level for U.S. prices \u201chas created a feeling of uneasiness among the OPEC cartel,\u201d which only recently announced a major oil cut, and the \u201cwhole weight of this cut was shouldered by Saudi Arabia.\u201d said Naeem Aslam, chief investment officer at Zaye Capital Markets.<\/p>\n<p>At a meeting in early June, the Organization of the Petroleum Exporting Countries with de facto leader Saudi Arabia, and the group\u2019s allies \u2014 together known as OPEC+ \u2014 extended previously agreed production cuts through the end of 2024, while Saudi Arabia voluntarily agreed to reduce its oil output by an additional 1 million barrels a day in July.<\/p>\n<p>\u201cOil traders continue to worry about demand and hope that the revival in Chinese oil demand comes back into play,\u201d said Aslam. \u201cSo far, Chinese economic data has been lackluster, which is creating a dent in oil demand while OPEC is trying its best to maintain oil supply.\u201d\u00a0<\/p>\n<p>Meanwhile, Goldman Sachs cuts its December Brent oil-price forecast by nearly 10%, citing, in part, higher-than-expected supplies from sanctioned economies such as Iran and Russia. <\/p>\n<p>WTI fell 2.2% last week, while Brent crude lost 1.8% as sharp gains at the start of last the week following Saudi Arabia\u2019s announcement that it would voluntarily cut its oil production next month soon faded, overtaken by worries over demand.<\/p>\n<p>Attention this week is on the Federal Reserve, which is seen as likely to hold interest rates unchanged after a breakneck series of hikes that have taken the fed-funds rate from near zero in March of last year to their current range of 5% to 5.25%. However, policy makers were also expected to signal that further hikes were likely in the offing to continue bringing down inflation.<\/p>\n<p>\u201cShould the Fed hint at further rate hikes later in the year, as many now expect, there could be further downside for the price of the barrel. This is because crude is priced in dollars, and a stronger greenback means a lower nominal value,\u201d Ricardo Evangelista, senior analyst at ActivTrades, said in emailed comments.<\/p>\n<p>\u201cAt the same time, U.S. monetary policy is important not just for the world\u2019s largest economy but also for the rest of the world,\u201d he wrote. \u201cShould the Fed continue to focus on fighting persistently high inflation through stringent monetary tightening, it will eventually achieve its objective, but the side effect will be an economic slowdown. It\u2019s this perspective of a Fed-driven decline in demand that is now being discounted by investors, creating a downside for\u00a0oil\u00a0prices.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/u-s-oil-price-slides-back-below-70-a-barrel-ahead-of-this-weeks-fed-decision-d139ecf6?mod=investing\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil futures fell Monday, pulling global benchmark Brent crude prices down to their lowest finish since December 2021, with the outlook for energy demand a key focus ahead of a two-day U.S. Federal Reserve policy meeting this week. Price action August Brent crude BRN00, +3.44% BRNQ23, +3.44%, the global benchmark, declined by $2.95, or 3.9%, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-22083","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S. global oil prices settle at lowest since late 2021 ahead of this week\u2019s Fed decision | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Oil futures fell Monday, pulling global benchmark Brent crude prices down to their lowest finish since December 2021, with the outlook for energy demand a\" \/>\n<meta name=\"robots\" content=\"index, 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