Energy
Tuesday, March 12th, 2024 1:59 pm EDT
Key Points
- Crude oil futures experienced a slight decline as traders analyzed the latest U.S. inflation data’s potential impact on the Federal Reserve’s interest rate decisions for the year.
- The West Texas Intermediate (WTI) contract for April decreased by 38 cents, or 0.49%, to $77.55 a barrel, while the Brent contract for May dropped by 36 cents, or 0.39%, settling at $81.89 a barrel.
- Despite a rise in the consumer price index for February, with a 0.4% increase for the month and a 3.2% rise from a year ago, Federal Reserve Chairman Jerome Powell emphasized the need for more data to confirm sustainable inflation at 2% before considering interest rate adjustments. Lower interest rates typically stimulate economic growth, positively impacting crude demand.
Tuesday saw a slight downturn in crude oil futures as traders evaluated the implications of the latest U.S. inflation figures on the Federal Reserve’s interest rate decisions for the year. The West Texas Intermediate (WTI) contract for April dipped by 38 cents, or 0.49%, settling at $77.55 per barrel, while the Brent contract for May slipped by 36 cents, or 0.39%, closing at $81.89 per barrel. The consumer price index for February indicated a 0.4% increase for the month and a 3.2% rise from a year earlier, slightly exceeding the 3.1% forecast. Federal Reserve Chairman Jerome Powell emphasized last week that the central bank awaits further data indicating sustainable inflation at 2% before considering interest rate adjustments. Lower interest rates typically stimulate economic growth, thereby boosting crude demand. Despite a previous surge to $80 per barrel, WTI experienced a retreat due to concerns about Chinese demand and production levels in the Americas, particularly in the U.S. Concurrently, fuel prices have seen a 9% uptick since the year’s inception, with the average gallon of regular gas reaching $3.39, according to AAA data. OPEC’s forthcoming monthly oil market report is anticipated to offer insights into the trajectory of crude supply and demand for the remainder of the year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/12/oil-prices-steady-as-traders-evaluate-latest-us-inflation-data.html
