Oil Drops $5 a Barrel- Inflation Should Ease – IOTW Report

Oil Drops $5 a Barrel- Inflation Should Ease

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Wednesday’s report from ADP suggested private employers added 89,000 jobs last month, a much sharper slowdown in hiring than the 140,000 that economists expected. On Wall Street, that’s currently good news because the hope is a cooling job market would mean less upward pressure on inflation. That in turn could convince the Federal Reserve to take it easier on interest rates. A second report on the economy said that growth for businesses in the US services industry slowed in September by a touch more than economists expected.

Benchmark US crude fell $5.01 to settle at $84.22 per barrel, the worst drop in just over a year. It’s been pulling back since topping $93 last week. Brent crude, the international standard, lost $5.11 to $85.81. Big oil-and-gas companies fell with the price of crude. Exxon Mobil dropped 3.7%, Chevron lost 2.3% and ConocoPhillips slid 3.7%. Cal-Maine tumbled 7.3% after the egg producer reported a sharp drop in profit for its latest quarter from a year earlier.

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13 Comments on Oil Drops $5 a Barrel- Inflation Should Ease

  1. None of this means dick unless some relief is afforded to the middle class. Gas is still $5.50 a gallon, food prices are still high, the stock market hasn’t done anything all year, and interest rates on a 30-year fixed as at a 25-year high.

    If a recession hits next year (50/50) you would think it would not bode well for the incumbent, but all those election maxims have been thrown out the window, so who knows?

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  2. Why the hell is regular gas at $4.75 to $4.90 gallon now and one almost empty Chevron at $4.99 in Eastern Wash. right now. Especially if the price of oil has dropped $5 a barrel recently. I’m pissed at the state of Wash. and its damned carbon tax that make our gas even higher in price. This is ridiculous. FJI.

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  3. If you blue staters think you are being rat fucked and pig piled you are right. Regular gas is $3.51 in Virginia. Still way too high. It was $1.89 under Trump.
    Pack up your stuff, fill up and get out of your enviro hell holes. Stat.

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  4. @PHenry
    Rural Maryland is at $3.33. Libtardia is higher. It’s been steadily declining for the past month.
    Funny that the price is exactly the same as I travel from one end of the state to the other. Hagerstown to Ocean City. One or two stations up or down a few cents, but the vast majority is at 3.33 exactly…

  5. @Jethro – it never ceases to amaze me that when energy costs go up, so does the stock market, and vice versa. That does not make sense.
    $5 a barrel is about 10 cents a gallon. Something, but not huge. $30 drop is possible from where it is. Particularly if this evil administration goes away and the new one permits drilling.

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  6. Regular is $3 a gallon and Diesel is $4.09 in the ATL. The Governor has suspended state taxes. Above $4 a gallon I cannot afford to drive my truck. It is parked right now. I am eating a $900 a month expense over a $1500 loss per week running it right now. I have enough reserves for about another 14 months. I haven’t worked in 3 months.

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