Crude Oil WTI Futures Market News and Commentary
Jan WTI crude oil (CLF23) on Tuesday closed down -2.68 (-3.48%), and Jan RBOB gasoline (RBF23) closed down -5.28 (-2.40%).
Crude oil and gasoline prices Tuesday sold off to 11-1/2 month lows. Crude prices slumped Tuesday on a stronger dollar and concern that recent better-than-expected U.S. economic news will prompt the Fed to keep interest rates higher for longer, which could push the economy into recession and hurt energy demand. A selloff in stocks Tuesday has also reduced optimism about the economic outlook, which is bearish for energy demand.
Crude prices have been on the defensive since Monday when Saudi Arabia's state-controlled Saudi Aramco cut its prices for its key Arab Light grade crude prices to Asian customers for January delivery by $2.20 to $3.25 a barrel, a steeper cut than expectations of $2.10 a barrel.
A bearish factor for crude is Tuesday's decline in the crack spread to a 9-1/2 month low. A weaker crack spread discourages refiners from p... Read more