Oil futures fell by about 1 per cent on Thursday, extending losses from the previous day, as a surprise jump in U.S. crude stocks weighed on the market along with fears of a recession that were heightened by disappointing U.S. retail sales and output data.
“Bigger-than-expected fall in U.S. producer prices, a drop in retail sales and the massive decline in manufacturing output last month raised worries once again about the economic cost of rate hikes,” PVM Oil analyst Tamas Varga said. Still, Federal Reserve officials said interest rates needed to rise beyond 5 per cent even as inflation shows signs of having peaked and economic activity is slowing.
The mean average forecast from a Reuters’ poll of nine analysts had been for a fall of about 600,000 barrels.However, distillate stockpiles, which include diesel and heating oil, fell by about 1.8 million barrels against analysts’ expectations for a 120,000-barrel increase.
The oil man need not worry about the economy, and the price of gasoline. Every other Nation is sending their old combustible engine equipment to the war interest. Therefore watch the metal makers, oil producers, and banksters of preferred shareholders get richer again!