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Oil Drops for a Second Session

Wednesday, 20 September 2023

On Wednesday, WTI crude futures declined for a second straight session to $90 a barrel as caution prevailed ahead of the US Federal Reserve's interest rate decision. After the EIA report revealed that US crude stocks declined by 2.135 million barrels last week, almost in line with market estimates of a 2.2 million draw, the US oil benchmark remained near to over ten-month highs.

The API report on Tuesday suggested a larger fall of 5.25 million barrels. Additionally, the US Energy Information Administration reported on Monday that the nation's main shale oil producing regions' oil output is expected to fall for the third consecutive month in October, to 9.393 million barrels per day, the lowest level since May.

To combat gasoline shortages, the Russian government is reportedly considering imposing export taxes on all forms of oil products at a rate of $250 per metric tonne from October 1 through June 2024, according to Reuters.

(Written and edited by The Decision Maker - Finance editors)


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