Oil Prices Plummet on News of Brazilian Oil Workers' Strike Being Declared Illegal

Strategic Insights -

Crude and product futures suffered a significant decline Monday, following news that striking Brazilian oil workers were ordered back to work. The Brazilian Supreme Labor Tribunal's decision was a major factor in the market's downturn. The strike, which began over the weekend, had already led to disruptions in oil production and supply chains. As the market adjusts to the new information, oil prices are likely to continue to fluctuate in the coming days.

Key Takeaways:

  • Crude oil futures for November delivery on the New York Mercantile Exchange (Nymex) fell 20 cents to close at $18.19 per barrel.
  • November Brent futures on London's International Petroleum Exchange fell 19 cents to close at $16.96 per barrel.
  • Major oil companies dropped their posted price 25 cents to $16.50 per barrel in response to the market downturn.
  • The November No. 2 heating oil contract fell a full 1 cent to 50.24 cents per gallon, reacting to adequate inventory and news that Brazil's Supreme Labor Tribunal had declared the oil workers' strike illegal and ordered the workers back on the job.
  • The December contract fell almost as much, 94 cents to 51.30 cents per gallon.
  • Unleaded gasoline futures for November delivery to New York Harbor fell 0.53 cents to close at 46.66 cents per gallon in thin trading.
  • December contracts, the first month for reformulated gasoline contracts, fell 0.51 cents to 54.71 cents per gallon.

Statistics:

  • Crude oil futures fell 20 cents on the New York Mercantile Exchange (Nymex).
  • November Brent futures fell 19 cents on London's International Petroleum Exchange.
  • Major oil companies dropped their posted price 25 cents to $16.50 per barrel.
  • February 22, 2023.
  • The December contract for No. 2 heating oil fell 94 cents to 51.30 cents per gallon.
  • The December contract for unleaded gasoline fell 0.51 cents to 54.71 cents per gallon.
  • The November No. 2 heating oil contract fell 1 cent to 50.24 cents per gallon.
  • Unleaded gasoline futures for November delivery to New York Harbor fell 0.53 cents to 46.66 cents per gallon.

Sources:

  • World Now (No date provided)
  • Bloomberg Financial (No date provided)