The Limited Times

Now you can see non-English news...

Oil falls below $75 in the US for the first time since before Christmas 2021

2022-12-06T23:57:18.817Z


Oil prices in the United States fell to their lowest level this year, which is, for the most part, good news for consumers.


OPEC maintains policy of low crude production 0:53

New York (CNN Business) --

Oil prices in the United States have fallen to their lowest level this year, just as concerns about the economy dwarf concerns about new restrictions imposed on Russian energy.


The sharp drop in oil prices over the past two days is mostly good news for consumers, as gasoline costs should continue to fall.

US oil collapsed 3.5% this Tuesday, to US$ 74.25 a barrel, the lowest level since December 23, 2021. Thus, oil has fallen 43% since briefly reaching the US $130 a barrel last March amid fears of the Russian invasion of Ukraine.

  • The European Union embargo on Russian oil came into force: what is it and how would it affect the world?

Brent crude, the world benchmark, also lost 4% on Tuesday, settling at around US$79.50 per barrel.

The oil crash comes after the West imposed new restrictions on Russia that, for now at least, do not appear to be derailing global energy markets.

The European Union on Monday banned maritime imports of Russian oil, while the West imposed a cap of US $ 60 on the country's crude.

Both measures are intended to affect Moscow's ability to finance its war in Ukraine -- without hurting consumers -- by causing Russia to slash oil production.

advertising

"Russian oil is still in the market. For now, it looks like Russia is willing to play," said Robert Yawger, vice president of oil futures at Mizuho Securities.

Yawger said there is "no question" that energy markets are relieved that the price cap was not significantly lower than $60. A lower cap could have persuaded Russia to retaliate by sharply cutting supply.

"They've come up with a pretty good number. We don't want to kill the cash cow, just limit it," Yawger said.

The subdued reaction in energy markets is good news for consumers, who are finally finding relief at gas stations.

  • Gasoline prices continue to fall in the United States

According to the American Automobile Association (AAA), the average price of regular gasoline nationwide fell two cents to $3.38 a gallon on Tuesday.

Gasoline prices have fallen 14 cents in the last week and 42 cents in a month.

The national average has barely changed from a year ago, when it stood at $3.36 a gallon.

Despite the decline in energy prices, OPEC+ maintains its plan.

The oil group announced on Sunday its plans to maintain its oil production cuts, rather than take steps to disconnect more supply.

Fears of a recession continue to rock financial markets, including not only oil, but also stocks.

US stocks fell sharply on Tuesday, marking their second straight day of significant losses.

Reports on employment, factory orders and service sector activity, which exceeded expectations, have fueled concerns that the Federal Reserve will have to act more aggressively to quell inflation.

Some Federal Reserve officials have been in favor of raising interest rates to 5% or more next year.

"This potential 5% interest rate environment is scaring people," Yawger said.

GasolineOil prices

Source: cnnespanol

All news articles on 2022-12-06

You may like

News/Politics 2024-03-12T10:02:31.700Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.