Oil prices were falling early Wednesday after nations agreed for the first time to move away from using fossil fuels.
The COP28 climate talks in Dubai ended with attendees committing to curb the use of oil, coal, and natural gas quickly and in a just and orderly fashion. This fell short of what some countries wanted—it didn’t put an exact time frame on the transition, and didn’t demand a complete phase out of fossil fuels. But it was the first time the parties agreed to reduce oil and gas use, as opposed to simply reducing emissions or increasing renewable energy.
West Texas Intermediate,
the U.S. benchmark, dropped 0.9% to $68 a barrel.
Brent crude,
the international standard, also declined 0.9%, to $72.62 a barrel. Both contracts are trading around six-month lows.
Oil prices were also impacted by U.S. inflation numbers as the Federal Reserve prepares to deliver an interest-rate decision. The data lowered speculation about early rate cuts next year, which might have bolstered energy demand.
Separately, the Energy Information Administration lowered its forecast for oil prices next year, despite a recent agreement of the Organization of the Petroleum Exporting Countries to extend output cuts.
Write to Brian Swint at [email protected]
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