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Federal Reserves Williams: The economic impact of energy prices depends on market pricing levels.Federal Reserves Williams: The Fed needs to pay attention to data to determine how energy will affect inflation.Federal Reserves Williams: So far, energy prices are expected to affect overall inflation, rather than core inflation.Federal Reserves Williams: The current mechanisms related to the Federal Reserves balance sheet are functioning well.US-Israel-Iran Conflict: ① Iran 1. Iran claims to have shot down an MQ-9 Reaper drone. 2. All Iranian universities switched to online classes starting April 4th. 3. Iranian Parliament Speaker: US and Israels threats against Iran are a "major mistake." 4. Iranian Foreign Ministry: Some ships passed through the Strait of Hormuz after coordination. 5. Iran launched the 87th round of "True Commitment-4," striking multiple US and Israeli military targets. 6. Iran reiterated that its response was not directed against regional countries and called on all parties to maintain a prudent stance. 7. Iranian Parliament approved a bill to impose a toll on passage through the Strait of Hormuz, payable in Iranian currency. 8. Irans First Vice President: Negotiations on the Strait of Hormuz require a commitment not to invade Iran. Trump may send troops to Kharg Island, but withdrawal will be beyond his control. Sending troops to Kharg Island would be a one-way trip. 9. Iranian Foreign Ministry Spokesperson: The issue of withdrawing from the Treaty on the Non-Proliferation of Nuclear Weapons is under parliamentary review. The Bushehr nuclear power plant is still operating. ① No direct dialogue with the United States, only information exchanged through intermediaries. Iran did not participate in Pakistan-led meetings regarding the war. ② United States 1. Market news: An explosion occurred at a US military base in Saudi Arabia. 2. US military deployment continues to increase, with thousands of soldiers from the elite 82nd Airborne Division beginning to arrive in the Middle East. 3. US Treasury Secretary Bessenter: The US will regain control of the Strait of Hormuz over time. 4. Trump confirmed that the US is in talks with Iranian Parliament Speaker Ghalibaf, and will destroy Iranian energy and power facilities and Kharg Island if negotiations break down. The response to Irans attack on the Israeli oil refinery is "coming soon." 5. US Secretary of State Rubio: Iran must stop manufacturing the drones and missiles used in the recent attacks. The war with Iran will end when the US achieves its objectives. Irans permanent control of the Strait of Hormuz will not be allowed. 6. White House: Iran negotiations are ongoing and progressing well. There are discrepancies between Irans public statements and what it privately revealed to US officials. Trump intends to call on Arab countries to help pay for the war. ③ Israel 1. The Israeli military claims to have launched a new round of airstrikes against Tehran. 2. Support for the war against Iran declines, with anti-war protests erupting in several parts of Israel. 3. The Israeli military claims to have killed Hamza Rachin, a senior Hezbollah commander. 4. The Israeli military claims to have attacked key military and academic institutions of the Iranian Islamic Revolutionary Guard Corps. 5. The Israeli military claims the war has entered its "final stages" and will target Iranian economic targets. 6. Israeli Prime Minister Netanyahu: The war with Iran is "halfway through," and the current focus is on enriched uranium stockpiles. He refused to disclose a timetable for ending the war. 7. Israel claims a gasoline storage tank fire at the Haifa refinery. The Israeli Energy Minister stated that the Haifa refinerys production facilities were undamaged and fuel supplies will not be affected. ④ Other 1. Multiple military bases in Syria attacked. 2. The Egyptian president calls on Trump to end the war with Iran. 3. German Chancellor Merz: If the war with Iran escalates, Europe will face pressure comparable to that of the pandemic. 4. European officials say Iran is urging the Houthis to equip themselves for the Red Sea, despite internal divisions within the Houthis. 5. Market news: The EU announces an expansion of its naval operations in the Red Sea and Indian Ocean. 6. British Prime Minister Starmer: A coalition of 35 countries has been formed to de-escalate the situation. 7. Market news: The European Council has extended sanctions against Iran until April 13, 2027. 8. President of the Iranian Red Crescent: Russia has delivered 330 tons of medicine and other humanitarian aid to Iran. 9. Ukrainian President Zelensky: A prolonged war with Iran will embolden Russia, and Ukraines arms supply will face challenges. 10. UAE Ministry of Defense: Intercepted 11 ballistic missiles and 27 drones launched by Iran on March 30. Since Iran openly began its attacks, the UAEs air defense system has intercepted 425 ballistic missiles, 15 cruise missiles, and 1,941 drones.

Oil Prices Extend Their Gains Following China's Stimulus Announcement

Haiden Holmes

Apr 27, 2022 09:35

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Oil prices increased in early Asian trade on Wednesday, extending gains from the previous session on China's central bank's announcement that it will bolster the country's economy.


Concerns over demand, on the other hand, weighed on futures as Beijing officials scrambled to contain a nascent COVID-19 outbreak and escape the same crippling city-wide lockdown that has engulfed Shanghai for a month.


By 0019 GMT, Brent crude futures had risen $1.11, or 1.1 percent, to $106.10 a barrel. West Texas Intermediate crude futures in the United States increased by 84 cents, or 0.8 percent, to $102.54 a barrel.


Crude oil prices increased by roughly 3% in the previous session's turbulent activity.


China's central bank announced Tuesday that it will strengthen its economy's prudent monetary policy support. Any stimulus would increase demand for oil.


Meanwhile, Russia's Gazprom (MCX:GAZP) has informed Poland's PGNiG that it will suspend gas deliveries along the Yamal pipeline beginning Wednesday morning, according to a statement from PGNiG. Poland will be required to make payments under a new arrangement on Tuesday, Gazprom said.


The announcement boosted NYMEX ultra-low sulfur diesel futures by more than 9% on Tuesday, settling at a record close of $4.47 per gallon.


In terms of supply, the US government will release data on crude stocks later Wednesday. According to industry figures released Tuesday, US crude and distillate inventories increased last week, but gasoline inventories decreased.