EUR/USD 1.14043
0.306%
Gold 4052.17
0.635%
Oil 69.512
-2.541%
USD/JPY 161.630
-0.103%
GBP/USD 1.32231
0.249%
GBP/JPY 213.730
0.159%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 26, according to Irans Press TV, US President Trump has again ordered that all Iraqi oil revenues controlled by Iraq be deposited into accounts at the Federal Reserve Bank of New York. Executive Order 13303 was originally signed after the US military action against Iraq in 2003 and has been renewed annually since, always citing "national security" as the reason. The White House has not issued a press release on this matter, but Trump sent a formal notification to Congress on May 4 regarding the extension of the order. In the formal notification, Trump stated: "The various obstacles hindering the orderly reconstruction of Iraq, the restoration and maintenance of domestic peace and security, and the development of political, administrative, and economic institutions continue to pose an exceptionally significant threat to US national security and foreign policy. Therefore, this Executive Order must remain in effect beyond May 22, 2026."According to Iranian state television, three foreign oil tankers that attempted to pass through the Strait of Hormuz "without authorization" were forced to turn back after warnings from the Iranian Revolutionary Guard Navy.On June 26, State Councilor Chen Yiqin conducted research in Jiangxi Province from June 23 to 26 on employment, sports, and other related work. She emphasized the need to thoroughly study and implement the spirit of General Secretary Xi Jinpings important speeches, earnestly implement the decisions and deployments of the Party Central Committee and the State Council, resolutely implement the employment-first strategy, actively promote the high-quality development of the sports industry, accelerate the cultivation of more new growth points, and strive to achieve a virtuous cycle of increased residents income, expanded domestic demand, and economic development. Chen Yiqin pointed out that it is necessary to strengthen the employment-first policy, accelerate the implementation of the action plan to stabilize, expand, and improve employment, support industries and enterprises with strong employment absorption capacity to stabilize jobs, and make every effort to ensure employment for key groups such as college graduates and migrant workers. She stressed the need to scientifically grasp and proactively adapt to changes in the employment situation, carry out large-scale vocational skills training programs, continuously improve the public employment service system, and cultivate new occupations and positions around the development of emerging and future industries to better promote employment and income growth for the masses.A Reuters poll shows that for the first time since 2023, more economists are predicting that the Federal Reserve will raise interest rates rather than cut them.A Reuters poll showed that 78 of the 102 economists surveyed expect the Federal Reserve to keep the federal funds rate unchanged at 3.50% to 3.75% in 2026, compared to 72 of the 102 economists surveyed in early June.

Oil falls below $90 per barrel as rising interest rates dampen demand prospects

Haiden Holmes

Sep 22, 2022 11:39

6.png


Oil prices extended falls on Thursday after the U.S. Federal Reserve struck a more hawkish tone than anticipated, heightening concerns that rising interest rates and inflation may weigh on demand for petroleum in the coming months.


As anticipated, the Fed raised interest rates by 75 basis points on Wednesday, causing crude oil prices to drop. The likelihood of a tighter monetary policy rattled the markets in response to Fed Chair Jerome Powell's declaration that more aggressive measures were required to contain inflation.


Powell claimed that the Federal Reserve is now willing to risk economic and labor market weakness to combat inflation. To battle excessive inflation, it is believed that other major central banks would raise interest rates, with the Bank of England preparing to act later today.


Brent oil futures traded in London slid 0.4% to $89.56 per barrel on Thursday, while U.S. West Texas Intermediate WTI crude futures declined 0.3% to $82.72 per barrel as of 20:39 ET (00:39 GMT).


It is projected that the combination of rising interest rates and growing inflation will have a negative effect on crude oil demand, hence retarding economic growth. In addition to reducing customers' purchasing power, high loan rates have a negative impact on fuel demand.


The dollar's strength, which touched a 20-year high on Thursday, has also impacted foreign crude demand this year by driving up import prices.


These fears have pulled oil prices below the annual highs hit at the commencement of the Russia-Ukraine war. In tandem with the White House's gradual withdrawal from the Strategic Petroleum Reserve this year, government efforts to decrease fuel prices have flooded the market with oil.


Notwithstanding, an escalation in the Russia-Ukraine war might further diminish Russian crude supply, foreshadowing a possible price hike. This week, President Vladimir Putin announced a partial mobilization of soldiers in order to "annex" portions of Ukraine.


Due to Russia's initial invasion of Ukraine, oil prices surged in February, as major European and Asian consumers relied heavily on Moscow for supplies. Due to supply limits, oil prices may climb, especially as the conflict escalates.


A harsh European winter is also expected to raise crude oil demand as more countries switch to heating oil.

Suggestion