Defying Predictions Crude Oil Prices Continue To Plummet

CNBC: Defying forecasts, crude oil prices have wiped out most of this year’s gains and could head lower 

* Oil prices were briefly negative for the year Monday, a surprising turnaround from projections that crude could be in short supply and selling at much higher prices. 

* For consumers, that means cheaper-than-expected fuel, and gasoline prices are expected to fall below last year’s level by Christmas, according to OPIS. 

Oil prices are defying expectations and are barely higher on the year, as the outlook for oil demand continues to deteriorate for now. 

West Texas Intermediate crude futures for January settled higher Monday at $77.24 per barrel, following a drop to $73.60 per barrel, the lowest price since last December. WTI was up 2.2% for the year, after briefly turning negative earlier Monday. 

Gasoline prices at the pump have also been falling dramatically and could be cheaper than last year for many Americans by Christmas, according to an outlook from the Oil Price Information Service. On Monday, the national average was $3.546 per gallon of regular unleaded fuel, down from $3.662 a week ago but still higher than the $3.394 a year ago, according to AAA.  

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Update: US oil prices hit lowest level in nearly a year. Gas is down 6% in a month (CNN)  

WNU Editor: Crude oil prices are still historically high. And refinery issues will mean continuing high prices for diesel and home heating oil. But while lower oil prices is a good development, it is also a signal that the Chinese economy is heading for a slowdown due to the spread of Covid and Corvid restrictions, and economies in the West appear to be heading in a recession.