Crude Oil Brent Futures Market News and Commentary
Nov WTI crude oil (CLX22) on Friday closed down -4.75 (-5.69%), and Nov RBOB gasoline (RBX22) closed down -12.35 (-5.08%).
Crude oil and gasoline prices Friday sold off sharply, with crude plunging to an 8-month low and gasoline falling to a 2-week low. A rally in the dollar index Friday to a 20-year high undercut energy prices. Also, the energy markets are worried about a global recession due to the sharp increase in global interest rates. In addition, a slump in global equity markets Friday curbed confidence in the economic outlook and was bearish for energy demand.
Concern that aggressive tightening by global central banks will slow economic growth and energy demand is bearish for crude prices. The FOMC Wednesday raised the federal funds target range by 75 bp, and the Swiss National Bank (SNB) raised rates by 75 bp on Thursday. Also, the Bank of England (BOE) and Bank of Norway Thursday raised rates by 50 bp.
Crude oil prices had some support from Wednesd... Read more