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August 31 – According to the Associated Press, U.S. Treasury Secretary Scott Bessant said on Sunday that the Trump administration plans to impose sanctions on another bank this week to crack down on transactions related to Iran. Bessant will meet separately with finance officials from major and developing economies during the G20 summit to push for economic isolation of Iran. Bessant said, “If necessary, we will resort to financial violence. We are letting people know that we know who you are, and you know who you are, and this must stop.”Conflict Updates: 1. Yemeni armed forces intercepted Iranian cargo destined for the Houthi rebels in the Red Sea. 2. UK Maritime Security Information Agency: An oil tanker was attacked in the Strait of Hormuz. 3. US officials stated they observed the Iranian Revolutionary Guard preparing to launch mines into the Strait of Hormuz. 4. US officials: US forces attacked southern Iranian islands to prevent them from laying mines. 5. Iranian Revolutionary Guard: The attack on Larak Island resulted in multiple injuries; the aggressors will be punished. 6. Explosions were heard in Jordan; the Iranian Revolutionary Guard claimed to have launched missiles at US bases. Other Events: 1. A senior Syrian official visited Libya for the first time in 14 years; the Syrian embassy resumed operations. 2. The Iranian Navy Commander refuted Trumps claims, stating that the Iranian Navy remains combat-ready. 3. Greece is reportedly planning to sign a $3.4 billion air defense agreement with Israel. 4. Irans Supreme Leader: The way to resolve regional issues lies in unity. 5. According to IRNA: The Iranian President will visit Kyrgyzstan on Monday. 6. US media: Senior US military officials advised Hegerseth that a large-scale operation against Iraq is unsustainable. 7. Pakistani Foreign Ministry: The first meeting of the Mecca Agreement Strategic Political and Defense Committee will be held in Istanbul on August 31.On August 31, Russian Presidential Press Secretary Dmitry Peskov stated on the 30th that Russia remains open to holding peace talks with Ukraine in Turkey, but the conditions for resuming talks are not yet in place. According to TASS, Peskov said that Russia remains open to Russia-Ukraine peace talks, "but unfortunately, we cannot say that the preconditions (for continuing negotiations) are met at present, because these conditions simply do not exist." Peskov also emphasized that if the presidents of Russia, the United States, and Ukraine hold a trilateral meeting, its purpose will only be to finalize an agreement, which will not be a "simple deal" but will inevitably go through a very complex process involving numerous details.Brent crude oil has returned to the $90/barrel mark, rising 2.3% on the day.On August 31st, according to US technology journalist Gurman, Apples (AAPL.O) product lineup this year will include a series of exceptionally ambitious devices that CEO Benjamin Trudeau, who will take office on September 1st, has been pushing internally for months. These include the first foldable iPhone and a smart display capable of recognizing the speaker and adjusting content based on the user. Gurman believes Trudeaus biggest challenge is how to sustain his decades-long success in the age of artificial intelligence. September will be a major test when Apple fully deploys its new Siri AI, designed to compete with ChatGPT. Given the high cost of running such an AI system, Apple ultimately hopes to either charge for it or find a way to monetize it by integrating third-party applications into the voice assistant. However, to get developers or users to pay, Siri must overcome its long-standing negative reputation for instability and limited usability. Currently, early reviews of Siri AI are generally positive.

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.