After touching a three-year high above $86 a barrel on Thursday, oil fell $2 as a forecast for a warm winter in the United States put the brakes on a rally fueled by tight supply and a worldwide energy shortage. According to a National Oceanic and Atmospheric Administration report released Thursday morning, winter weather in much of the United States is predicted to be warmer than typical. After reaching a session high of $86.10, the highest since October 2018, Brent crude slid $2.31 to $83.51 at 11:37 a.m. EDT (1537 GMT). The price of West Texas Intermediate crude in the United States declined $2.40 to $81.02.
The US Energy Information Administration reported leaner crude and fuel stockpiles on Wednesday, with crude supplies at the Cushing, Oklahoma storage hub falling to a three-year low. Brent's price has increased by more than 60% this year, owing to a delayed ramp-up in supply by the Organization of Petroleum Exporting Countries and Allies (OPEC+) and a global coal and gas shortage that has forced power generators to turn to oil.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.