Oil prices surpass the $90 per barrel level for the first time since November 2022, and Wall Street ends the session negatively

increases in oil

Oil prices surpass the $90 per barrel level for the first time since November 2022, and Wall Street ends the session negatively.

Wall Street’s three major indexes fell in the last trading session of September’s second week. Heading to the second-lowest week of this month and the third in the past four weeks. In the past three days, Wall Street has experienced two declining sessions, which include Wednesday and today’s session.

The decline in stock market gains was primarily due to two main reasons: the rising concerns over the Fed meetings and its decisions and the surprising climb in the oil market.

For the first time since November 2022, oil prices exceeded the $90 per barrel level. The high increase was primarily due to many reasons, but one reason stands out the most. Oil cuts by Saudi Arabia and other OPEC members have significantly boosted oil prices this year. Based on several reports, the WTI has jumped by more than 17% in the past three months.

Economically speaking, driving oil prices to new records is a strategic move from the oil mafia producers to tackle the U.S. economy and weaken the dollar.

So far, the plan seems to work, which makes it a bigger topic to discuss. On the other hand, Washington, DC, officials and their allies in the West were planning to reduce oil prices while taming inflation.

On top of that, one of the main problems that is growing day by day is that we are seeing a significant decline in market supply growth. Between oil production cuts and high oil prices, energy costs and manufacturing activities will decline eventually, and that represents a great recession at the end.’

The author of the investing group, Neo Nillesen, has confirmed these fears through his comments. Neo says, “Producers are seeing rapidly declining Tier 1 drilling reserves. They focus on free cash flow generation instead of production growth and reward investors through dividends and buybacks.”

He added that” the U.S. is running out of steam.”

Moving to the commodity market, as of today’s midday trading session, the West Texas Intermediate was up by 0.59% to $60.59 per barrel. Bernt oil prices roughly added 0.09% to $93.02 per barrel. As for natural gas prices, they declined by 1.29% to $2.67 per gallon.

In other economic news, the automaker strike continues, moving to the tenth day of the strike. As of today, there are a total of 13,000 workers on strike at three factories owned by General Motors.

As expected, strikes will only send these companies’ share prices into the red, which include the Ford Bronco, Jeep Wrangler, and GMC Canyon.

Recent economic events haven’t been that pleasant for most investors, which increases the probability of another interest rate hike in November. By now, investors have turned their attention to the anticipated FED meeting. The meeting will reveal the FED’s plans for the rest of the year, specifically on the subject of higher interest rates.

At the same time, the S&P 500 benchmark was down by 0.79%, the Nasdaq declined by 1.18%, and the Dow fell by 0.5%.

Written by Editor

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