Crude oil prices continue to slide from recent 52-week highs hit just a week ago. The commodity this morning hit new lows for the month, with USOIL, which tracks the price of West Texas Intermediate, sinking as low as $93.56 this morning, a level not seen since February 28.
In terms of the justification for such a fall over the last two days, media sources seem to be split on the reasoning as they attempt to justify the price action conducted by commodity traders. Sources such as DailyFX claim the fall is due to recently imposed lockdowns within China that will dampen demand. MarketWatch meanwhile points to China, as well as hopes in Ukraine for a “diplomatic solution” to the invasion launched by Russia. Markets Insider also points to the latter.
Reuters meanwhile simply pointed to easing supply concerns as well as the raising rate of COVID cases seen in China, taking a slightly wider approach to the topic.
Whatever the case may be, WTI at the time of writing is sitting slightly about $94.50 a barrel, down approximately 7.5% on the days session.
Despite the falling price of crude, consumers are unlikely to have felt this at the pumps as of yet. GasBuddy is currently reporting that the average price per gallon of gas across the US is sitting at $4.36 per barrel, one of the highest averages seen by consumers historically.
Despite the complaining exhibited across social media from American consumers, Canadians arguably have it far worse. The average price of fuel in US$ per gallon has hit as high as $7.04 in the last week, and currently sits at $6.81.
In per litre terms, that amounts to a high of C$1.858 per litre, while currently sitting at $1.805 based on the latest available data. In fact, US consumers are complaining about an average of $1.159 per litre, a figure seen by Canadians since the fall of 2020.
Information for this briefing was found via TradingView, GasBuddy, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
