Oil dives more than $4 on strong dollar, recession fears

[BumRushDaShow]

Source: Reuters

Sept 7 (Reuters) - Oil prices tumbled more than $4 on Wednesday, slumping below levels seen prior to Russia's invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks. Brent crude futures were down $4.12, or 4.4%, at $88.71 a barrel by 12:43 p.m. EDT (1543 GMT), touching their lowest since Feb. 3 and falling below $90 a barrel for the first since Feb. 8.

U.S. West Texas Intermediate crude fell by $4.29, or 4.9%, to $82.46, reaching its lowest since Jan. 24. "Right now the market is basing its concerns about what will happen due to sharply higher energy prices in Europe, slowing demand in Europe, and interest rates rising," said Phil Flynn, an analyst at Price Futures Group.

Several world central banks are slated to keep hiking rates to fight inflation, but the United States appears better placed to weather the storms, economists have said. That has boosted the dollar to a 24-year peak against the yen and a 37-year high versus sterling. The stronger greenback pressures oil prices, since most worldwide oil sales are transacted in dollars.

The European Central Bank is expected to raise interest rates sharply when it meets on Thursday. A U.S. Federal Reserve meeting follows on Sept. 21. The Bank of Canada hiked interest rates by three-quarters of a percentage point to a 14-year high on Wednesday, as expected, and said the policy rate would need to go even higher as it battles raging inflation.

Read more: https://www.reuters.com/markets/europe/oil-falls-renewed-demand-concerns-rate-hike-expectations-2022-09-07/

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WTI snapshot done ~3:45 pm EDT (showing price at 3:31 pm EDT) -

[sprinkleeninow]

1. Just wait. The cartel will remedy this.

[GB_RN]

2. Those Assholes Already Agreed To A Cut...

I saw that report the other day.

High oil prices are bad on the wallet, I admit, but on the other hand, they're good for the environment.

[sprinkleeninow]

4. Saw that, too.

[oldsoftie]

21. We still burn about 100M barrels a day worldwide. It doesnt vary too much from that.

unless there's a pandemic.
And high prices could get use GOP Congress......

[VMA131Marine]

18. They have to be somewhat careful

Because part of what’s driving the global economy into recession is high energy prices. If they try to keep energy prices high as recession reduces demand they will feed a self-reinforcing feedback loop.

[IronLionZion]

3. Let's Go Brandon!

Biden is killing oil prices!

Or the summer driving/travel season is over and the winter heating oil season hasn't started yet.

[Ford_Prefect]

5. To be fair the value of oil has always been a bit of a slippery subject.

[ruet]

6. Fvck Fair.

I've been listening to MAGAts balme Biden for high gas prices since DAY 1. They can fucking choke on it.

[BumRushDaShow]

8. You missed

the bon mots there. Slid right by and down into the well someone drilled... (sorry ).

[Ford_Prefect]

9. I see that my subtle form of sarcasm is yet again a victim of of the internet.

[ruet]

11. It's Me Not You.

I'm reading it now and still don't get it. I'm sure I'll have a "eureka" moment soon enough though.

[IronLionZion]

12. Oil is slippery!

[ruet]

14. Yeah, I Get That Part.

Maybe I was expecting a little more punch at the end of that line? I've had a long day? Hell, I dunno.

[Ford_Prefect]

16. Nudge, nudge. Wink, wink as it were.

Irony doesn't always translate well on the net. It is a bit more obvious when you can hear someone else speak it. Intonation is not captured well in text mode.

When I write these kinds of comments I usually hear someone speaking it in my mind in a rather particular voice.

[Bengus81]

7. Dropped $15.13 per barrel since 8/29--9 days. Price at the pump has barely budged here

Need to start holding some of these Mega gas outlets responsible too for this endless gouging. I'll check out the price tomorrow but bet it will be the same as yesterday.

[BumRushDaShow]

10. I know some states have laws that require that stations can only change prices once a week

so in those cases, there will always be a delay in the change (and it will be dependent on what the gasoline wholesalers/distributors do to the retailers).

[Bengus81]

23. Not the case here in Wichita,QT raises them almost daily when they can

And then to PROFIT even more they trickle them back down. I'll check some prices today.

[BumRushDaShow]

24. Well one thing that is about to happen in many states

is that they are about to switch to "winter blend" at the pump and that is supposed to be cheaper...

[IronLionZion]

13. They are quick to raise prices

but slow to lower them. Check out sites like gasbuddy.com to compare prices. Sometimes it's cheaper down the road.

[GreenWave]

15. Trump's oil buddies are struggling? Good!

[Ford_Prefect]

17. I don't intend to advocate violence but I am moved to wonder how fast things would change

if a few select golf courses were over-run and a few Mercedes ultra cars were burned in front of Chevron/Exxon/BP US headquarters? How quickly then might we see change in the right direction?

They were rather and rightly afraid of the masses back in 1973.

[Dopers_Greed]

19. See those lower gas prices?

Brandon did that!

[BumRushDaShow]

20. Meanwhile I just spotted this re: Abbott in TX

https://www.forbes.com/sites/davidblackmon/2022/07/13/texas-gov-greg-abbott-gets-his-own-grid-related-i-did-that-meme/?sh=247c15a86950

[Bayard]

22. Our gas prices fell below pre-Covid levels over the past few weeks

Rethugs will have to find something else to whine about. They always do.