Oil Prices Plummet as Inflation Concerns and Fed Meeting Loom

Crude oil prices continue to decline due to concerns over oversupply and weak demand, with traders awaiting the outcome of the Fed meeting and the Energy Information Administration's weekly oil inventory report. Russian oil exports have reached their highest level since July, casting doubt on the implementation of additional OPEC+ output cuts in January. Rising U.S. oil production has added to oversupply concerns, pushing the futures market into a contango until mid-2024. Despite OPEC+ efforts, oil prices have fallen by about 25% since September, with WTI trading below $70 per barrel and Brent crude slipping below $75 per barrel.