The benchmark Crude WTI is down 0.20% to $77.79 today at 4.41 a.m. EST. After yesterday’s tumble, crude prices have now dropped nearly 8% over the past month amid global macro dynamics.
After chatter of a production increase by OPEC lost steam, reports of a price cap on Russian oil in the $65 to $70 per barrel range by the European Union further weakened sentiment.
This price range may not put a stopper on Russian oil flows and rising COVID-19 cases in china further continue to act as a dampener on demand hopes.
Numbers from the Energy Information Administration indicate crude inventories declined by 3.7 million barrels in the U.S. last week. Chevron (CVX) seems to be on a path to resuming drilling operations in Venezuela and could possibly bag a license from the U.S. Treasury early next week.
Meanwhile, natural gas too is down 1.92% to $7.17 today after seeing a rally yesterday on the proposed cap of €275 per megawatt hour on gas prices by the European Union. Expectations of colder weather continue to lend support to prices.
The Energy Select Sector SPDR ETF (XLE) is now up 5% over the past month.
Here are related tickers for this article:
- United States Oil Fund LP (USO)
- ProShares Ultra Bloomberg Crude Oil (UCO)
- United States Natural Gas Fund LP (UNG)
- Cheniere Energy (LNG)
- ConocoPhillips (COP)
- Occidental Petroleum (OXY)
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