U.S. crude oil falls nearly 3%, closes below $68 on report Saudi committed to production increase
U.S. crude oil prices dropped nearly 3% on Thursday following reports that Saudi Arabia intends to proceed...
U.S. crude oil prices dropped nearly 3% on Thursday following reports that Saudi Arabia intends to proceed with oil production increases later this year. Sources familiar with the kingdom's plans indicated that Saudi Arabia is prepared to move away from its unofficial price target of $100 per barrel, even if this decision leads to a prolonged period of lower oil prices. This move signals a potential shift in Saudi oil strategy, aiming to ramp up output in December regardless of the impact on global markets.
On Thursday, West Texas Intermediate (WTI) closed at $67.67 per barrel, down 2.9%, while Brent crude fell to $71.60 per barrel, down 2.53%. Year-to-date, U.S. crude oil has declined over 5%, and Brent has dropped about 7%. Other energy prices also saw declines, with RBOB gasoline down nearly 2% and natural gas falling 1.4% [October contract: $2.60 per thousand cubic feet], though natural gas remains up over 3% for the year. The market remains cautious amid growing expectations of rising oil production in Libya following the resolution of a political dispute that had previously disrupted output.
In addition to the anticipated production increases from Saudi Arabia and Libya, the oil market faces pressure from weaker demand in China, the world's largest crude importer. While Chinese oil demand has softened, prices briefly rallied earlier in the week after China announced a new economic stimulus package, offering some support to the market. However, the combination of increased global production and sluggish demand has kept oil prices under downward pressure.
Dow ends 260 points higher, S&P 500 logs 42nd record close of 2024
U.S. stocks closed higher, with the S&P 500 scoring...
U.S. stocks closed higher, with the S&P 500 scoring another record close as investors await an inflation update on Friday.
The Dow Jones Industrial Average added 260.36 points, or 0.6%, ending at 42,175.11, its second-highest close ever.
The S&P 500 rose 23.11 points, or 0.4%, ending at 5,745.37, scoring its 42nd all-time closing high this year.
The Nasdaq Composite added 108.09 points, or 0.6%, ending at 18,190.29.
Traders were dialing back expectations for how big an interest-rate cut could be on the docket at the Federal Reserve's November meeting. The odds were shifting in favor of a cut of 25 basis points on Thursday after a string of economic data pointed to resilience in the U.S. economy.
While the labor market remains the biggest focus, investors will be monitoring Friday's inflation data via the Fed's preferred PCE index. The data is likely to show inflation cooling further, backing additional rate cuts.
Hurricane Helene is now projected to intensify into a Category 4 hurricane by the time it makes landfall on Florida’s coast later today — with additional strengthening possible in the hours before.
What to know: The National Hurricane Center warned of at least 130 mph winds and a life-threatening storm surge of up to 20 feet in coastal areas. Thousands of Floridians have been forced to evacuate amid threats of flooding and power outages.
Durable-goods orders were flat in August — when a sharp decline was forecast
The numbers: Orders for durable goods were flat in August, the Commerce Department...
The numbers: Orders for durable goods were flat in August, the Commerce Department said Thursday. The result was much better than anticipated. Economists had forecast a 3% fall in orders for durable goods — products made to last at least three years.
Durable goods orders rose a revised 9.9% in July, up slightly from the prior estimate of a 9.8% gain.
Core capital goods orders, which exclude volatile sectors like transportation and defense, rose 0.2% last month after a 0.2% drop in July.
Shipments of core goods, which are factored into GDP, rose 0.1% in August.
Chesapeake, Southwestern to Form Expand Energy as $7.4B Deal Closes
The companies announced Sept. 26 that Chesapeake Energy’s...
The companies announced Sept. 26 that Chesapeake Energy’s $7.4 billion merger with Southwestern Energy is expected to close in the first week of October, with the combined company renamedExpand Energy Corp.
The two natural gas players said they had cleared the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Expand Energy will become the largest gas producer in the U.S. with its massive, dual footprints in both the Appalachia and Haynesville shale plays.
The all-stock acquisition of Southwestern by Chesapeake was first announced in January, but additional scrutiny and information requests by the Federal Trade Commission caused some delays. The new Expand name was only announced on Sept. 26.
