U.S. crude oil prices fall below $78 a barrel to their lowest since July

Environment

An oil pumpjack pulls oil from the Permian Basin oil field in Odessa, Texas, on March 14, 2022.
Joe Raedle | Getty Images News | Getty Images

U.S. crude prices on Tuesday fellow below $78 a barrel to hit the lowest point since July as weak global economic data overshadowed concerns that the Israel-Hamas war could erupt into a broader regional conflict.

West Texas Intermediate was down $2.98, or 3.58%, at $77.93 a barrel, while Brent fell $3.00, or 3.52%, to $82.18, both their lowest prices since July.

Stock Chart IconStock chart icon

hide content
Oil prices, YTD

The drop comes after China reported mixed economic data.

Beijing’s crude oil imports rose by volume and value in October, but the country’s overall exports fell more than expected, indicating softening global demand. 

The world’s second largest economy reported a 6.4% drop in exports in U.S. dollar terms for October compared to the same period a year ago, worse than the 3.3% drop predicted by a Reuters poll.

China’s exports have fallen for six consecutive months now, as a higher interest rates put downward pressure on the global economy. Minneapolis Federal Reserve President Neel Kashkari lowered expectations Tuesday that the U.S. central bank might cut rates.

“We have to get inflation back down to 2% over a reasonable period of time. Ultimately the economy will tell us how much is needed to get there and I just don’t know,” Kashkari told Bloomberg Television.

The data out of China offset the impact of Saudi Arabia’s and Russia’s oil output cuts, which lifted oil prices higher earlier in the week. Riyadh and Moscow confirmed on Sunday that they would keep those cuts in place through at least the end of the year.

Oil prices had spiked in the week following Hamas’ devastating terrorist attacks on Israel on concerns that the war could escalate into a broader regional conflict that disrupts oil supply.

Prices have fallen since mid-October as worries of the conflict spreading in the immediate term have eased.

This is a developing story. Please check back for updates.

Articles You May Like

Neuralink Brain Chip Implant Wires Now Stable in First Patient, Musk Hopes for More Human Trials This Year
Tesla starts selling software range unlocks for recent Model Y RWD
Etsy CEO says company is escaping ‘race to the bottom’ and getting back to its artisan roots
Biden makes major gaffes at NATO summit – but vows to fight on
No drama from new chancellor’s first major speech but that seemed to be the point