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ASB Bank of New Zealand: It is currently expected that the Reserve Bank of New Zealand will cut the cash rate to 2.25% by the end of the year.The Hong Kong interbank offered rate for one month in Hong Kong dollars rose 15 basis points to 3.36089%, the highest level in nearly four and a half months.On September 18th, many consumers reported on social media that they couldnt buy lemonade at various Mixue Ice City stores. A source close to Mixue Ice City reported that some stores in certain regions have recently experienced fluctuations in raw material supply due to weather delays in the arrival of a batch of imported lemons. Furthermore, Sichuan and Chongqing lemons have entered their harvest season and require storage for optimal taste, leading to supply shortages in some areas. However, overall lemon reserves are sufficient. A large volume of imported lemons is about to arrive, and the stored lemons have been evaluated and tested to meet usage standards. They are being distributed to stores, and the lemon shortages will soon be resolved.According to futures data from September 18th, Japans commercial crude oil inventories increased by 196,072 kiloliters to 10,698,257 kiloliters in the week ending September 13th. Gasoline inventories increased by 46,361 kiloliters to 1,691,790 kiloliters. Kerosene inventories decreased by 5,766 kiloliters to 2,692,860 kiloliters. The average refinery operating rate in Japan was 84.0%, compared to 87.6% the previous week.Samsung Electronics: Hiring 60,000 employees over the next five years; positions will focus on chips, biotechnology and artificial intelligence.

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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