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Boeing service executives said that the supply of cockpit windows is lower than expected, which could lead to delivery delays.Boeing service executives said flight hours in most regions continued to show moderate to good growth.June 7th - According to sources familiar with the matter, U.S. Treasury Secretary Bessenter instructed his team on June 6th to "assess the situation in Gulf allies and calculate the costs of repairing damage caused by Iran." The sources stated that the U.S. intends to utilize relevant mechanisms to transfer frozen Iranian assets to Gulf allies to fund their efforts to "address potential future damage from Iran and carry out reconstruction and repair work." The U.S. will also consider whether to use Iranian assets "to compensate for past losses."June 7th - As the conflict with Iran triggers global inflationary pressures, the European Central Bank (ECB) is expected to raise interest rates by 25 basis points next week, becoming the first major central bank among the G7 to tighten monetary policy. Markets anticipate at least one more rate hike this year. In contrast, the Bank of Canada is likely to keep its rates unchanged, while the Federal Reserve and the Bank of England are expected to remain on hold this month, observing the impact of the Iranian conflict. ECB officials aim to ensure that inflation in the Eurozone does not become deeply entrenched, but a rate hike would come at the cost of further dragging down an already weak economy. ECB President Christine Lagarde is likely to provide a clearer signal on the next steps at the press conference following the decision. Meanwhile, the ECB will also release its quarterly economic forecasts, assessing different scenarios of the energy shocks impact on the regional economy.On June 7th, Willie Walsh, Director General of the International Air Transport Association (IATA), stated that rising jet fuel prices are expected to lead to more airline bankruptcies and industry consolidation. He pointed out that a merger between United Airlines and American Airlines is unlikely due to regulatory hurdles. Walsh also stated that once the Middle East conflict subsides, airlines and hubs in the Gulf region will regain market share. Furthermore, despite disappointing progress in clean fuels, IATA remains committed to its 2050 net-zero emissions target.

Oil prices decline due to demand concerns; a Fed rate hike looms

Aria Thomas

Sep 21, 2022 10:28

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Wednesday oil prices declined as traders anticipated that a Federal Reserve interest rate hike would dampen oil consumption. Indications of a likely increase in U.S. gasoline stockpiles were also negative.


By 20:37 ET, Brent oil futures declined 0.6% to $90.37 per barrel and WTI futures declined 0.2% to $83.73 per barrel (00:37 GMT). Tuesday, both contracts dropped more than 1 percent.


On Wednesday, the Fed is poised to increase interest rates by at least 75 basis points. To combat inflation, the bank will hike interest rates for the eighth time this year.


The action will tighten monetary conditions in the United States, weighing on economic expansion and oil demand. High inflation and rising interest rates have a negative impact on the nation's oil consumption.


Dollar rose prior to the hike. A stronger dollar increases the cost of oil imports, hence decreasing global crude demand. A stronger dollar reduces crude demand in India and Indonesia.


The API statistics released on Tuesday suggested weak oil demand from U.S. consumers. Last week, the API reported that U.S. gasoline inventories increased by 3.2 million barrels.


Despite lowering gas prices, the estimate and data indicating a decline in U.S. vehicle traffic showed lackluster fuel consumption in the country.


Today's API statistics are a preview of the official EIA data. It is anticipated that gasoline inventories decreased by 0.4 million barrels last week.


Oil prices have declined significantly from their peaks during the Russia-Ukraine war due to expectations of a decline in demand. The continued depletion of the U.S. Strategic Petroleum Reserve has also contributed to price declines.


A harsh European winter could increase this year's heating oil use. As a result of U.S. sanctions on Russian oil, the supply should tighten, causing prices to rise.

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