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The Ukrainian military says it attacked an oil refinery in Russia’s Saratov region last night.On March 21, He Lifeng, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with executives from renowned multinational corporations including HSBC, UBS, Louis Dreyfus, Siemens Healthineers, Schneider Electric, Rio Tinto, Prudential, Investor Services, Standard Chartered, Syzygium, and T.C. Pharmaceutical Industries at the Diaoyutai State Guesthouse. He Lifeng stated that Chinas economy is currently progressing steadily and towards new and better development. During the 15th Five-Year Plan period, China will unswervingly expand high-level opening-up and promote high-quality development, which will create broader market opportunities for multinational corporations. He welcomed multinational corporations to increase their investment in China and continuously deepen mutually beneficial cooperation.On March 21, a spokesperson for the Hatem Anbia Central Headquarters of the Iranian Armed Forces stated that the United States and Israel are now targeting private vessels and passenger transport in the Persian Gulf. The Iranian Armed Forces warned the US and Israel that if such actions occur again, Iran will take strong and reciprocal retaliatory action.On March 21, local time, the Iranian Islamic Revolutionary Guard Corps issued a statement saying that at 3:45 a.m. that day, Irans new air defense system struck down Israels third F-16 fighter jet in central Iran. It is claimed that in the first three weeks of the conflict, Iran successfully intercepted and destroyed more than 200 aircraft, including drones, cruise missiles, refueling aircraft, and top-tier fighter jets.On March 21st, HSBC stated that the Federal Reserve maintained its policy rate at 3.50%-3.75% at its March meeting, hinting at a "wait-and-see" approach. Persistent inflation and rising geopolitical risks have created uncertainty for the Fed. We maintain our previous view that the Fed will keep rates unchanged in 2026 and 2027. Inflation risks have increased, particularly due to soaring energy prices, while labor market risks have slightly decreased. Energy price volatility and geopolitical risks should continue to support safe-haven demand and a stronger dollar.

Oil prices increase despite uncertainties on the amount of a U.S. interest rate hike

Haiden Holmes

Jul 15, 2022 10:37

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Concerns over the Federal Reserve's aggressiveness in raising interest rates to combat excessive inflation led to a spike in oil prices in early Asian trading on Friday.


At 00:07 GMT, Brent crude futures for September delivery jumped 80 cents, or 0.8%, to $99.90 per barrel, while WTI crude futures rose 69 cents, or 0.7%, to $96.47 per barrel.


The most hawkish Fed officials suggested on Thursday that they prefer another 75-basis-point interest rate rise at the U.S. central bank's policy meeting this month, as opposed to the greater rate hike that traders had priced in following Wednesday's inflation report.


The Fed rate rise is expected to follow the 100-basis-point increase by the Bank of Canada on Wednesday, which shocked the market.


A day before Russia attacked Ukraine in what Moscow termed a "special military operation," both benchmark futures fell below the closing price of February 23 on Thursday, as a result of rate hike uncertainty and terrible economic figures. By the conclusion of the trading day, Brent and WTI had recovered nearly all of their losses.


Joe Biden will go to Saudi Arabia on Friday to attend a summit of Gulf allies and encourage them to raise oil output.


The bulk of Organization of the Petroleum Exporting Countries producers are producing at maximum capacity, and it is uncertain how much extra oil Saudi Arabia can send to the market quickly.


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