Oil nears $94 per barrel
Crude prices have gained nearly 18% in September
Inflated oil prices are here 'for a long period of time': Andy Lipow
Lipow Oil Associates President Andy Lipow says the private sector is doing the 'heavy lifting' to increase supply and lower prices.
The price of oil is nearing $94 per barrel after U.S. crude inventories fell by 2.2 million barrels last week, according to the Energy Information Administration (EIA).
Total U.S. oil supply ended the week at just 416.3 million barrels, the EIA said, 4% below the five-year average.
U.S. Oil Fund
WHERE DO THE GOP PRESIDENTIAL CANDIDATES STAND ON ENERGY POLICIES?
The crude shortage comes as members of the Organization of the Petroleum Exporting Countries (OPEC), Russia and Saudi Arabia, extend production cuts of just 1.3 million barrels a day to the end of 2023.
Crude oil storage tanks at the Cushing oil hub in Cushing, Oklahoma, March 24, 2016. (Nick Oxford / Reuters Photos)
Brent and West Texas Intermediate (WTI) crude prices have climbed for the last five days and touched their highest intraday trading levels of 2023 on Wednesday. Both benchmarks are now targeting their biggest quarterly jumps since Russia's invasion of Ukraine in the first quarter of 2022, according to Reuters.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 69.75 | -1.54 | -2.16% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 28.31 | -0.55 | -1.91% |
CHEVRON CEO: OIL WILL BREAK $100 PER BARREL 'SOON'
The facilities of the oil refinery on the industrial site of PCK-Raffinerie GmbH in Germany. (Christophe Gateau/picture alliance via / Getty Images)
That year, oil prices shot above $100 for the first time since 2014 amid the conflict as demand recovered from COVID-19 lockdowns.
GAS PRICES DROP SLIGHTLY AFTER THE FED'S INTEREST RATE PAUSE: AAA
A move back above $100 for an extended time would boost revenues for members of OPEC, whose economies rely mostly on oil, while obstructing industrialized economies working to cool inflation and lower interest rates.
Kevin O'Leary: Increasing oil production in America would solve the price of oil
O'Leary Ventures chairman Kevin O'Leary joins 'Kudlow' to discuss the surge of illegal immigrants and rising oil prices as the Federal Reserve fights inflation.
Meanwhile, shares of oil producers like Chevron, ExxonMobil and Occidental Petroleum have mirrored the spike in crude prices, even as the S&P 500 slipped.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 161.42 | -0.35 | -0.22% |
| XOM | EXXON MOBIL CORP. | 119.27 | -1.30 | -1.08% |
| OXY | OCCIDENTAL PETROLEUM CORP. | 49.93 | -0.72 | -1.42% |
| SP500 | S&P 500 | 5870.62 | -78.55 | -1.32% |