U.S. oil prices take sudden leg downward, now off 10%, following a March rally to 13-year highs
Source: CNBC
By Yun Li
Oil prices dropped in a sudden move on Wednesday, giving back some of the rally this month amid supply disruptions stemming from Russias invasion of Ukraine.
WTI crude oil tumbled more than 13% to trade at $108 per barrel, on track for its worst day since April 2020. Earlier this week, WTI topped $130 per barrel briefly a 13-year high during escalated geopolitical tensions.
Brent crude oil, the international benchmark, fell a similar 12% to $112, headed for its biggest one-day drop since November. Brent hit $139 on Monday, its highest since 2008.
The move in oil lower came amid indications of possible progress by the U.S. in encouraging more oil production from other sources. Reuters reported that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+.
A general view of oil tanks in the Transneft-Kozmino Port near the far eastern town of Nakhodka, Russia.
Yuri Maltsev | Reuters
Read more: https://www.cnbc.com/2022/03/09/us-oil-prices-take-sudden-leg-downward-now-off-10percent-following-a-march-rally-to-13-year-highs.html
Beachnutt
(7,189 posts)prices at the pump drop....
SergeStorms
(18,897 posts)And they have an entire list of reasons as to why that is, none of them convincing.
Chainfire
(17,305 posts)skyrockets. On the way down, it takes a while. Greed has no bounds.
IronLionZion
(45,258 posts)prices go up fast, but they take their sweet time lowering it.
Sapient Donkey
(1,568 posts)And at some point gas prices follow. People will then complain that Biden is purposefully lowering oil prices to kill the oil industry and stop development of extraction and pipelines in the US.
elleng
(130,147 posts)Dow
+1.87%
Nasdaq
+2.99%
Dow
+1.87%
oldsoftie
(12,410 posts)And pressure US companies to increase THEIR production too.
And maybe people can slow the hell down and save a little more. If every car on the road just saved ONE gallon a week it would add up to a LOT of gallons
mpcamb
(2,855 posts)It only makes sense...
It would at least reduce the knee-jerk increases on every ripple of news.
2naSalit
(86,054 posts)The tops raise and lower with the level of stock in them, you can see the inside walls and not any or the actual tops which means the levels are very low. They all look like that. I wonder how often that happens and for how long.
moniss
(3,949 posts)whatever is the easiest target when talking about price increases for oil. Point of fact is that oil prices have been increasing since the last days of the Orange Ruski. Last year as we began to emerge for more travel of all kinds the price for diesel/Jet-A fuel had been rising because the available stocks had grown thin worldwide partially to do with cold weather and also due to ocean going vessels now being required to use the cleaner low-sulfur diesel that is also used in trucking etc. Refining has lagged for various reasons also which contributes to tight supply and upward pricing.
But one of the main culprits always escapes scrutiny because of overwhelming financial/political clout. Large oil traders have been free to run up markets for several decades. Even though countries can put limits on their collusive behavior they hide behind the nostrum of the "free market" when in fact it is far from such a reality. Our own Commodities Futures Trading Commission is basically like the piano player in the house of ill repute. If shown obvious collusive behavior they act shocked, send strongly worded letters and then issue a penalty that is a tiny fraction of the profits made by the collusive behavior. A tangential reference is appropriate here for the SEC and the collusive behavior that ran up the meme stocks last year.
I recall several years ago an economist from the Oil Price Information Service stated in an interview that the price for oil has about 30% - 40%+ excessive speculation in that price during times of market run-ups. Because oil is such a vital national economic interest it should be treated much like we do with public utilities. Market limits on speculation should be strict in order to reflect the seriousness of this commodity to our national economy and security. It's long past time to treat this like it's the same as manipulating the shares of GameStop.
IbogaProject
(2,694 posts)JudyM
(29,122 posts)swallowing prices at the pumps, it would be patriotic of US oil companies to ease up on their profit margins for the good of the country.
moniss
(3,949 posts)from taking advantage to make profits.
ToxMarz
(2,154 posts)has given all these companies cover to raise prices on everything with impunity, if for no other reason but profit. They would be foolish not to (from a selfish point of view) exploit this gift.
andym
(5,441 posts)and in trying times by rumors-- that means unpredictable prices until the war ends.