NEW YORK, Sept. 18 (UPI) — A decision by the U.S. Federal Reserve to keep rates steady and signs of increased U.S. oil production pushed oil prices deeply into negative territory Friday.
Downward momentum from the Thursday session spilled over into early Friday trading in New York. West Texas Intermediate, the U.S. benchmark for crude oil prices, was down nearly 3.5 percent at the opening bell to $45.29 per barrel. Brent crude oil lost 1.7 percent to $48.23 per barrel.
Oil prices moved lower ahead of Thursday’s announcement from the Federal Reserve. Minutes from the board said current rate levels were appropriate, though concerns exist on the margins of the global economy.
“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the minutes read.
A report early this week from the Organization of Economic Cooperation and Development said global economic growth was sub-par.
Concerns about the ability of the European economy to emerge from recession and a slowdown in Asian economies adds downward pressure to a market already plagued by low demand and oversupplies.
Data from the American Petroleum Institute show U.S. crude oil production in August is at its highest level since 1972. The August average of 9.3 million barrels of oil per day is 5.4 percent above last year.
“U.S. crude oil and gasoline production soared to record highs in August as the industry finds innovative ways to increase production even as crude prices have fallen,” API Director of Statistics Hazem Arafa said in an emailed statement.
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