RE:Just a blip in the data West Texas Intermediate slipped below $86 a barrel to the lowest since early September. The drop came even as OPEC+ leaders Saudi Arabia and Russia committed to sticking with production curbs of more than 1 million barrels a day until the end of the year. US gasoline futures plummeted 5.9% to trade at $2.22 a gallon.
Meanwhile, inventories at the largest US storage hub in Cushing, Oklahoma, saw their first increase in eight weeks. Still, stockpiles nationwide continued to drain to the lowest since December 2022, and a key US pipeline has also seen lower flows this week.
Oil had rallied since mid-June as the alliance’s supply cuts tightened the market, with inventories shrinking and key timespreads indicating greater competition for prompt barrels. The surge has run into resistance in recent sessions as investors fret that the Federal Reserve may not be done raising interest rates, with a strengthening dollar making commodities more expensive for most buyers. Major gains in US Treasury yields have also hurt raw materials.