US oil plunges below $75 for first time since just before Christmas
WORLD 08 December 2022 - 06:10
Oil prices have tumbled to their lowest level of the year as worries about the health of the economy overshadow concerns about new restrictions imposed on Russian energy.
The sharp drop in oil prices the past two days is mostly good news for consumers, signaling prices at the gas pump should continue their recent plunge, CNN reports.
US oil fell 3.5 per cent to $74.25 a barrel on Tuesday – the lowest settle since December 23, 2021. That leaves oil down by 43 per cent since briefly topping $130 a barrel in March amid fears about Russia’s invasion of Ukraine.
Brent crude, the world benchmark, also lost 4 per cent on Tuesday to around $79.50 a barrel.
The oil selloff comes after the West hit Russia with new restrictions that, so far at least, do not appear to be derailing global energy markets.
The European Union imposed a ban on seaborne oil imports from Russia on Monday, while the West placed a $60 cap on Russian oil. Both moves are designed to hurt Russia’s ability to finance its war in Ukraine, without hurting consumers by causing Moscow to slash oil production.
“Russia oil is still on the market. As of now, it appears Russia is willing to play ball,” said Robert Yawger, vice president of oil futures at Mizuho Securities.
Yawger said there is “no doubt” energy markets are relieved that the price cap was not significantly lower than $60. A lower cap could have persuaded Russia to retaliate by sharply cutting supply.
“They got a pretty good number. We don’t want to kill the golden goose, just throttle it back,” Yawger said.
The tame reaction from energy markets is welcome news for consumers who are finally getting relief at the gas pump.
The national average price for regular gasoline dipped by two cents to $3.38 a gallon on Tuesday, according to AAA. Gas prices have dropped 14 cents in the past week and 42 cents in a month. The national average is almost unchanged from a year ago when they averaged $3.36 a gallon.
Despite the drop in energy prices, OPEC+ is staying with its game plan. The oil cartel on Sunday announced plans to stick to its oil production cuts rather than taking steps to take more supply offline.
Recession fears continue to rattle financial markets, including not just oil markets but the stock market. US stocks fell sharply on Tuesday, the second straight day of significant losses.
Stronger-than-expected reports on employment, factory orders and service sector activity have fueled concerns that the Federal Reserve will have to move more aggressively to snuff out inflation. Some Fed officials have expressed support for raising rates to 5 per cent or beyond next year.
“This potential 5 per cent interest rate environment is really freaking people out,” said Yawger.
Caliber.Az
1
|
20 points. What did Armenia, the EU and the US agree on in Brussels? Sensational details on Caliber.Az
17 April 2024 - 11:01
|
2
|
Caliber.Az to reveal sensational details of "Brussels meeting" Important announcement
16 April 2024 - 12:09
|
3
|
Iran seeks international backing following missile strikes on Israel Raisi calls Russia & Qatari leaders amid tension
17 April 2024 - 16:56
|
4
|
Serbian President seeks Azerbaijani support amid Western pressures Insights from Political Scientist Stevan Gajić
17 April 2024 - 13:10
|
5
|
French ambassador recalled from Azerbaijan amidst bilateral strain Macron admits defeat
17 April 2024 - 15:19
|
Azerbaijan’s ASAN service, UN to launch joint project
19 April 2024 - 12:50
Armenian PM’s participation in Russian president’s inauguration raises speculation
19 April 2024 - 12:35
Russian peacekeepers withdraw from Karabakh
Amid changing dynamics in region19 April 2024 - 12:32
Tesla CEO reacts to alleged Israeli airstrike on Iran
19 April 2024 - 12:18
CIA trying to determine damage and Iranians’ reaction
19 April 2024 - 12:05
Azerbaijan building new road in Karabakh
PHOTO / VIDEO19 April 2024 - 11:50
How Ukraine can counter Russian strikes?
Report by ISW19 April 2024 - 11:35
White House admits Biden uncle wasn’t eaten by cannibals, died in Pacific Ocean crash
19 April 2024 - 11:21
CIA Director: Ukraine could lose by end of 2024
19 April 2024 - 11:08
Russian media tycoon accused of embezzling billion rubles, fleeing justice
19 April 2024 - 10:57
Israel hits military air base in Iran
19 April 2024 - 10:55
European Bank for Reconstruction and Development unveils investment volume in Azerbaijan
19 April 2024 - 10:50
Crude oil prices jump, equities sink as Israel rains missiles on Iran in retaliation
19 April 2024 - 10:40
Azerbaijan continues clearing Khankandi of Armenian weapons
19 April 2024 - 10:27
Armenian prime minister unveils details of Brussels meeting
19 April 2024 - 10:12
A Tu-22M3 bomber crashes in Russia
VIDEO19 April 2024 - 09:57
Iraq, Iran, Syria sign agreement to combat terrorism
19 April 2024 - 09:42
US not involved in Israeli strike in Iran: media
19 April 2024 - 09:30
COP29, European Investment Bank presidents discuss roles in climate finance
19 April 2024 - 09:17
Israel launches "limited" retaliatory strike on Iran
LIVE19 April 2024 - 09:03
Police evict migrants from disused French office block ahead of Olympics
19 April 2024 - 09:02
This lava tube in Saudi Arabia - human refuge for 7,000 years
19 April 2024 - 07:03
Luxury bargain hunters head to Japan as weak Yen brings big discounts
19 April 2024 - 05:04
Two countries in Europe powered by 100% renewable energy as wind capacity soars
19 April 2024 - 03:05
Farewell to metals in industry forever
19 April 2024 - 01:03
Poland to join European Sky Shield scheme, following thaw with Berlin
18 April 2024 - 23:00
UN chief sees risk of full-scale conflict in Middle East
18 April 2024 - 21:16
Azerbaijan, Austria discuss areas of potential cooperation
PHOTO18 April 2024 - 21:04
Azerbaijan discusses partnership opportunities with CICA at COP29
PHOTO18 April 2024 - 20:53
Russian Army deploys new version of BM-27 Uragan MLRS Rocket Launcher in Ukraine
18 April 2024 - 20:40
Europe moves forward with major hydrogen projects
18 April 2024 - 20:27
US, Britain issue new sanctions on Iran in response to Tehran's attack on Israel
18 April 2024 - 20:13
Türkiye's Togg starts working on new B-SUV model
18 April 2024 - 19:59
US commends Azerbaijani deminers, pledges support for complete demining of lands
18 April 2024 - 19:46
Georgian opposition announces “full mobilization”
18 April 2024 - 19:32
Azerbaijan, Austria discuss implementation of joint industrial projects
18 April 2024 - 19:18
Israeli forces withdraw from area of Nuseirat refugee camp in central Gaza
18 April 2024 - 19:04
Azerbaijani parliament speaker: France eyes to continue colonialism policy in South Caucasus
18 April 2024 - 18:49
Iran warns it knows where Israel's nuclear sites
"Our hands - on trigger"18 April 2024 - 18:34
Congress Committee’s rep: New Caledonia expresses gratitude to Azerbaijan
18 April 2024 - 18:19