Crude Oil Brent (F) Futures Market News and Commentary
Sep WTI crude oil (CLU22) on Tuesday closed down -0.26 (-0.29%), while Sep RBOB gasoline (RBU22) closed up +7.40 (+2.56%).
Oil prices on Tuesday turned lower after an early 1% rally. Oil prices turned lower on gloom sparked by the sell-off in stocks and caution about Fed policy ahead of Wednesday's CPI report.
The early rally was sparked by Tuesday's news that the flow of Russian crude oil in the southern leg of the Druzhba pipeline through Ukraine to Hungary, Slovakia, and the Czech Republic was halted last week because sanctions prevented the payment of the transit fee by Ukraine's oil pipeline company. That pipeline carries about 250,000 bpd of oil and supplies key refineries. However, the crude oil flows in the northern leg of the pipeline through Belarus to Poland and Germany were not affected. The pipeline stoppage could be resolved within days if Ukraine can get its banks to address sanction problems and authorize the transit fee payment.
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