EUR/USD 1.13656
-0.012%
Gold 4045.54
-0.760%
Oil 81.279
0.134%
USD/JPY 163.737
0.002%
GBP/USD 1.32878
0.001%
GBP/JPY 217.577
0.024%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On July 28th, Brendan Murphy, Head of North American Fixed Income at Insight Investment, stated in a report that investors might consider increasing their exposure to the front end of the US Treasury yield curve. Murphy explained that the asset management firm expects the Federal Reserve to maintain interest rates for an extended period, and the next eventual rate adjustment is likely to be a rate cut. He said, "Therefore, now may be a good time to consider fixed income allocations, including increasing exposure to the front end of the yield curve." However, the prolonged conflict in Iran will increase market uncertainty, and there is also the possibility of dissenting votes at Wednesdays Fed meeting. Murphy noted that the Fed has consistently maintained that "ignoring" the impact of energy price shocks is the best strategy, unless a "second-round effect" emerges and becomes deeply entrenched, or long-term inflation expectations become de-anchored.Nasdaq futures fell 1.1% to a daily low, while S&P 500 futures dropped nearly 0.4%.On July 28th, Anthony Willis, senior economist at Tianli Investment, stated in a report that the pressure on Federal Reserve policymakers to tighten policy has increased as US inflation remains significantly above target, while the economy and labor market remain resilient. Willis stated, "However, policymakers may be willing to temporarily ignore the recent surge in oil prices until the impact of inflation becomes clearer." Nevertheless, the broader trend is evident: under Warshs leadership, the Fed is adopting a more hawkish stance. The market currently prices a 38% probability of a Fed rate hike on Wednesday and has fully priced in the possibility of a September rate hike.According to the Iranian news agency IRNA, the Iranian Foreign Minister held telephone talks with the foreign ministers of Oman and Saudi Arabia. While discussing the latest bilateral and regional developments, both sides emphasized strengthening cooperation and advancing joint diplomatic efforts to maintain regional stability and alleviate the insecurity in the Strait of Hormuz caused by aggressive actions by the United States.Philips (PHG.N) CEO: We have several million dollars in tariff refunds to receive in the third quarter.

China Eases COVID Limitations, U.S. Storm Fuels Supply Fears

Skylar Williams

Dec 27, 2022 17:21

36.png


China's latest loosening of COVID-19 limits boosted fuel demand expectations on Tuesday, but fears that winter storms throughout the United States are impacting energy supply continued to support prices.


At 07:12 GMT, Brent oil was up 52 cents, or 0.6%, to $84.44 a barrel, while U.S. West Texas Intermediate crude was up 48 cents, or 0.6%, to $80.04 per barrel. They reached their best level since December 5 early in the session.


Brent surged 3.6% on Friday, while WTI gained 2.7%, marking their largest weekly increases since October.


On Monday, British and American markets were closed for the Christmas holiday.


China will no longer need arriving travelers to undergo quarantine beginning on January 8, the National Health Commission announced on Monday, removing a regulation in place since the beginning of the epidemic three years ago. This increased expectations for a rise in crude oil demand from the largest importer.


China's oil demand is on the mend, which is wonderful news for the refining industry, according to Serena Huang, head of APAC analysis at Vortexa.


The U.S. dollar weakened when China said it will end its quarantine policy. A weakening dollar makes gasoline cheaper for foreign currency holders.


According to Kazuto Saito, chief analyst at Fujitomi Securities Co Ltd, fears of supply interruption due to winter storms in the United States are also supporting oil prices. The worries "prompted purchasing, despite the fact that many market players were on vacation," Saito noted.


The weather in the United States is expected to improve this week, so the rise may not continue long.


More than two dozen people were killed by a snowstorm that immobilized western New York over the Christmas weekend, according to local officials, as teams worked to dig out the region around Buffalo from its strongest winter storm in decades.


Passengers were stranded around the country during the holiday weekend as thousands of flights were canceled due to the bigger storm system.


On Friday, frigid temperatures and strong winds knocked out power and reduced energy output across the United States, forcing up rates for heating and electricity.


Concerns of a potential production decrease by Russia also contributed to the increase in oil prices.


In response to price ceilings, Russia may reduce oil production by 5 to 7 percent at the start of 2023, according to Deputy Prime Minister Alexander Novak, as reported by the RIA news agency on Friday.

Suggestion