Crude Oil Futures Plummet
West Texas Intermediate (WTI) and Brent crude oil futures abruptly ended their recent five-day rally.
The September WTI contract plunged $4.63 Thursday to settle at $53.95 per barrel. The light crude marker traded with in a range from $53.59 to $57.99.
Also falling sharply was the October Brent, which lost $4.55 to end the day at $60.50 per barrel.
A day after the U.S. Federal Reserve lower the target range for the federal funds rate to 2 to 2.5 percent, market watchers’ hopes that Wednesday’s action would be the first of a series of cuts in the key short-term interest rate were dashed after Fed Chairman Jerome Powell dispelled the notion. A Singapore-based economist told Bloomberg earlier Thursday that the Fed’s stance likely would soften energy demand.
Thursday’s WTI and Brent price movements also echo a message Investing.com’s Barani Krishnan relayed to Rigzone earlier this week: that ongoing concerns about the broader oil market likely would quickly reverse a price jump spurred by a Fed rate cut.
Following the pattern set by crude oil, reformulated gasoline (RBOB) posted a step decline as well. September RBOB settled at $1.75 per gallon, reflecting an 11-cent drop for the day.
Henry Hub natural gas for September delivery erased a portion of its 4.3-percent gain from Wednesday. The gas benchmark shed three cents Thursday, settling at $2.20.
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Senior Editor | Rigzone