Oil prices increased to a nine-month high on Monday.
According to City Index, oil prices rose to a nine-month high, at $86 per barrel in a thin holiday trading as traders await production updates from OPEC+, notably Saudi and Russian voluntary cuts.
It said, “Crude oil inventories fell last week, with increased crude exports and higher refinery utilization rates, according to the Energy Information Administration (EIA). The EIA also forecasts that US shale oil and gas production declined in August, adding to concerns of supply tightness. US energy firms reduced the number of oil rigs by seven to 530, their biggest cut since early June, according to Baker Hughes data, its lowest since March 2022.
For markets that were open, S&P 500 futures fell and Nasdaq futures edged higher. The dollar index and ten-year bonds were unchanged.
“Last week saw equities boosted by mixed economic data, on jobs and inflation, which traders chose to see as good news, not requiring the Fed to raise rates. Nasdaq and the Magnificent Seven tech stocks led the way. Following a “hawkish pause” in June, no change is expected this year. Fedwatch, the market’s gauge for official rates, is pointing to no change in rates at the September 19-20 FOMC meeting and just one in three chance of rate hikes by the end of the year. As always, this path is ‘data dependent.’
“Oil prices rose to a nine-month high, at $86 per barrel in a thin holiday trading as traders await production updates from OPEC+, notably Saudi and Russian voluntary cuts. Crude oil inventories fell last week, with increased crude exports and higher refinery utilization rates, according to the Energy Information Administration (EIA). The EIA also forecasts that US shale oil and gas production declined August, adding to concerns of supply tightness. US energy firms reduced the number of oil rigs by seven to 530, their biggest cut since early June, according to Baker Hughes data, its lowest since March 2022.”
