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Wednesday, February 1, 2023

Oil remains stable awaiting the Fed rate hike

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Two US Federal Reserve officials said Monday that they expected the Fed’s policy rate -now in a range between 4.25% to 4.5%- I would have to go up in stages to a range between 5.0% to 5.25% to control higher inflation rates.

The Federal Reserve monetary policy makers they said the new inflation datawhich will be published on Thursday, will help you decide whether they can slow the pace of interest rate hikes at your next meeting, only a quarter point increase instead of the larger increases they decreed for most of 2022.

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Thursday’s data “could easily clarify the direction of financial markets and oil in the coming weeks,” said tamas varga, of the PVM oil brokerage in dialogue with Reuters. Varga added that the dollar would fall if inflation comes in below expectations or is below November’s reading.

A weaker dollar may boost oil demandas dollar-denominated commodities are cheaper for holders of other currencies.

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The Chairman of the United States Federal Reserve, Jerome Powell, He is scheduled to speak at a central bank conference this afternoon.

  • So much WTI and Brent rose 1% on Mondayafter what Chinathe world’s largest oil importer and second largest consumer, opened its borders over the weekend for the first time in three years.

China also issued a second batch of crude oil import quotas for 2023, raising the total for this year by 20% compared to last year.

Secondly, US crude oil and distillate stocks reportedly fell last week, a preliminary Reuters poll showed on Monday. This Tuesday afternoon, the American Petroleum Institute will publish crude oil inventories.

Source: Ambito

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