New York West Texas Intermediate (WTI) crude futures closed positive on Monday (September 19) on the back of tight oil supplies. Because investors worry that a rapid increase in rates by the US Federal Reserve (Fed) will put the economy into recession. and affects the demand for oil
The WTI crude oil contract was executed in October. It was up 62 cents, or 0.7%, at $85.73 a barrel.
The Brent crude oil contract (BRENT) delivered in November. Up 65 cents, or 0.7%, to close at $92.00/barrel.
Crude oil futures rose after the reports of the Petroleum Exporting Countries (OPEC) and its Allies or OPEC Plus Oil production was below the target of 3.583 million barrels per day in August. In July OPEC Plus produces around 2.892 million barrels per day of oil below the target.
However, the market remains weighed down by concerns that the Fed’s rate hikes will hurt the economy and oil demand, with the CME Group’s latest FedWatch Tool indicating that 80% of investors weigh the Fed to raise interest rates 0.75% to 3.00-3.25% At the meeting on September 20-21. and weighted 20 percent that the Fed will raise interest rates by 1.00%.
Investors will be keeping an eye on the weekly crude stock report released by the US Federal Energy Information Administration (EIA) on Wednesday. Although analysts in a Reuters poll predicted that US crude stocks increased by 2 million barrels last week.