U.S. oil futures settle at their lowest in nearly 2 weeks
Oil futures declined...
Oil futures declined on Tuesday, with U.S. benchmark prices settling at their lowest in almost two weeks. "A strong U.S. dollar, rising yields and concerns over demand as the global economy slows is weighing on crude oil prices again," said Michael Hewson, chief market analyst at CMC Markets UK. Markets are gearing up for "multiple rate hikes this week from the Federal Reserve, Bank of England and Swiss National Bank," he said. "Fears over tight [oil] supply aren't having the supportive effect on prices that [we] would normally expect, however it also means they probably won't dip too far either." October WTI crude CLV22, -1.80% fell $1.28, or 1.5%, to settle at $84.45 barrel on the New York Mercantile Exchange on the contract's expiration day. That was the lowest finish for a front-month contract since Sept. 8, FactSet data show. The November contract CLX22, 0.17%, which became the front month at the end of the session, settled at $83.94, down $1.42, or 1.7%.
MarketWatch: Dow finishes down over 300 points as investors brace for Fed rate decision
Stocks stumbled Tuesday, ending sharply lower and erasing the...
Stocks stumbled Tuesday, ending sharply lower and erasing the previous session's gains as investors awaited a Federal Reserve rate decision that's expected to deliver another jumbo increase.The Dow Jones Industrial Average DJIA, -1.01% fell around 313 points, or 1%, to end near 30,707, according to preliminary figures. The S&P 500 SPX, -1.13% dropped 1.1% to finish near 3,856, while the Nasdaq Composite COMP, -0.95% shed 1% to close near 11,425. The Fed is expected to raise the fed funds rate by 75 basis points when it concludes a two-day policy meeting Wednesday, with traders penciling in an outside chance of a 100 basis point move.
The energy sector is off to a lower start, pressured by weakness in the major averages. U.S. stock futures are trading down as the markets expect the Federal Reserve to maintain its aggressive monetary policy stance at tomorrow’s policy meeting.
WTI and Brent crude oil futures are now down in early morning trading as investors remain on alert ahead of the Federal Reserve policy meeting tomorrow where it is expected the Fed will raise interest rates by 75 basis points. Markets around the world remain concerned on the possibility of a global economic slowdown as central banks across the world hike interest rates in order to tame inflation. This morning, Sweden's central bank hiked its benchmark rate by a greater than expected full percentage point and warned of more to come. Rate hikes are expected from the Bank of England and the Swiss Central Bank which will hold their policy meetings on Thursday. Tighter monetary policies have also lent support to the U.S. Dollar which is holding up near a 20-year high. Additionally, the DOE said it would sell up to 10M barrels from the SPR for delivery in November, which extends the plan's original aim to sell 180M barrels by the end of October.
Private oil operators left with little room to grow
Small private oil producers, the main drivers of shale growth in the past two years, will likely be forced...
Small private oil producers, the main drivers of shale growth in the past two years, will likely be forced to scale back activity as they run out of prime drilling locations, warned analysts and executives. Energy analytics firm Enverus estimates that most small drillers only have about six years' worth of economical drilling locations left in their acreage portfolio, and signs of a pullback are already starting to show.
US Energy Development Corp. has spent $60 million recently to acquire three separate asset packages in...
US Energy Development Corp. has spent $60 million recently to acquire three separate asset packages in the Permian Basin's Delaware portion. The deals involve working with other operators on 17 new wells, which are expected to generate roughly $100 million worth of production after they enter service by the end of the year.
