WTI Crude Oil prices retreated 1.2% to session lows below $87.00 on Friday, pressured by market expectations of a half-point Federal Reserve rate hike in December. The decline follows an EIA report showing a surprise crude stock build of 4,657 million barrels for the week ending November 6, defying forecasts of a 1.1 million barrel drawdown. While supply concerns in the Middle East persist, the combination of aggressive monetary policy outlooks and rising inventories continues to cap price gains.
Bearish
🤖 70%
WTI eased 1.2% to session lows below $87.00 as expectations of a half-point Fed rate hike in December following this week's US CPI data raise demand concerns. EIA data showed a crude stock build of 4,657 million barrels in the week ending November 6 versus an expected 1.1 million barrel drawdown, easing shortage fears. The stalled US-Iran diplomacy and rising attacks on Strait of Hormuz vessels limit further downside.
Catalysts
- ▼ Bets on a half-point Fed rate hike in December following this week's US CPI data, seen capping US oil consumption
- ▼ EIA report: crude stocks rose by 4,657 million barrels in the week ending November 6 vs an expected 1.1 million barrel drawdown
Risk Factors
- ▲ Diplomatic efforts between Washington and Tehran are stalled and attacks on vessels in the Strait of Hormuz, which carried about 20% of global supply before the war, have increased in recent weeks
- ▲ Middle East conflict concerns are keeping crude prices from retreating further