December 1, 2022 [TIPRANKS] – WTI crude oil closed 3% higher to settle at $80.55 in today’s trading session. The latest numbers from the U.S. Energy Information Administration indicate a draw of 12.6 million barrels from the petroleum inventories.
The figure came in much wider than the Street’s estimates of about 2.7 million barrels.
Fed Chair Jerome Powell spoke today at the Hutchins Center on Fiscal and Monetary Policy today where he said that the pace of rate hikes would likely slow down going forward. This is important for oil traders because interest rates can have an impact on oil demand, which tends to be lower when the economy slows down.
Further, the upcoming OPEC+ meeting on Sunday could decide the next trajectory for oil prices and will most likely continue on its current production schedule, according to Reuters.
Natural gas though fell 3.43% to settle at $6.93 but continues to gather strength as colder weather sets in. The Energy Select Sector SPDR ETF (XLE) is now down nearly 1.41% over the past five sessions.