Notwithstanding an impressive 17% rally last week, WTI crude oil prices declined by about 2.5% on Monday, amounting to the worst single-day performance since September 26th. The decline got triggered by OPEC+ plans to reduce output in subsequent months despite the reduction in energy prices since the beginning of this year.
Growth-linked crude oil was majoring in global Gross Domestic Product (GDP) worries about starting the new trading week. Federal Reserve Vice Chair Lael Brainard reiterated the central bank’s effort to tackle the highest inflation in 40 years.
She also stated the risks of easing prematurely, referencing the Fed’s actions back in the 1970s. Chicago Fed President Charles Evans also spoke, offering a similar message.
The rising pressure between Ukraine and Russia seemed to do little to strengthen crude oil prices. Bloomberg said that Russia’s recent missile strikes on Kyiv were the most intense barrage after the first days of the invasion.