Energy
Thursday, April 11th, 2024 3:27 pm EDT
Key Points
- Crude oil futures declined on Thursday due to concerns about inflation outweighing fears of a potential Iranian strike on Israel.
- The West Texas Intermediate contract for May delivery dropped by 0.86% to $85.47 a barrel, while the June Brent futures contract fell by 0.55% to $89.97 a barrel.
- Inflation worries persisted in the market after a hotter than expected consumer price index reading for March, leading to expectations of delayed interest rate reductions by the Federal Reserve and raising doubts about the possibility of a soft landing for the U.S. economy this year.
On Thursday, crude oil futures experienced a decline amidst concerns about inflation outweighing fears of a potential Iranian strike on Israel. The West Texas Intermediate contract for May delivery saw a loss of 0.86%, dropping to $85.47 a barrel, while the June Brent futures contract fell by 0.55% to $89.97 a barrel. The rise in oil prices on Wednesday, triggered by reports of an imminent Iranian strike against Israel, was short-lived as futures dipped during morning trading on Thursday. These fluctuations come as inflation worries grip the market, spurred by a hotter than expected consumer price index reading for March. Although the measure of wholesale prices for March was lower than anticipated, the 12-month basis showed a significant climb of 2.1%, the largest since April 2023, suggesting a persistent inflationary pressure. Consequently, expectations for Federal Reserve intervention have shifted, with interest rate cuts now projected to start in September, much later than previously anticipated. This delay, coupled with concerns over stubborn inflation, raises doubts about the possibility of a soft landing for the U.S. economy this year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/11/crude-oil-prices-today.html
