Crude oil slips again as inflation rate picks up on fears of rate hikes (NYSEARCA: USO)
Energy (XLE) was the best performing S&P sector on Wednesday, + 0.8%, despite US crude oil futures falling for a third straight day on a daily basis, as the market sees a hotter-than-expected level of US producer price index, which is seen as consolidating Expect strong interest rate hikes by the Federal Reserve.
Nymex crude oil delivered last month (CL1: COM) for November delivery is closed -2.3% to $87.27/bbl, and December Brent crude (CO1: COM) finished -1.9% to $92.45/bbl, both at one-week lows.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (DBO), (USL), (USOI), (NRGU)
Meanwhile, utilities (NYSEARCA:XLU) fell to the bottom of the industry rankings, -3.3%with Entergy (ETR CHILDREN), Alliant (LNT) and Duke Energy (DUK) among the biggest losers, as short-term Treasury bills rallied as data showed US inflation was still raging.
OPEC cuts crude oil demand growth forecast for 2022 and 2023, providing justification for the group larger than expected output cut It said it was part of ongoing efforts to balance the oil market.
In it monthly reportOPEC sees global oil demand growing by 2.64 million bbl/d this year, down from 3.1 million bbl/d in its September report, and oil demand growth in 2023 of 2.34 million bbl/d days, lower than the previous month’s estimate of 2.7 million bbl/day.
The revised estimates come after OPEC+ agreed to a 2 million bbl/day production cut starting in November, a move that sparked Crude oil futures prices rose sharply last week.