Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Vista Projects
Hazloc Heaters
Copper Tip Energy Services
Vista Projects
Copper Tip Energy
Hazloc Heaters


Oil Pares Weekly Loss as Traders Weigh Monetary Tightening


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate

Oil is heading for its first weekly decline since April after a period of choppy trading as investors weigh the prospect of further monetary tightening from central banks to curb rampant inflation.

West Texas Intermediate was trading near $118 and is on track for a 1.6% decline this week. Federal Reserve Chair Jerome Powell this week openly endorsed for the first time raising interest rates well into restrictive territory, a strategy that’s often resulted in an economic downturn. The bank hiked rates the most since 1994 on Wednesday to combat inflation.

Oil poised for the first weekly decline since late April

Russia’s invasion of Ukraine has compounded global price rises and helped to drive up the cost of everything from food to fuels. US retail gasoline prices have repeatedly broken records and the national average recently topped $5 a gallon. The White House is weighing limits on fuel exports to try and alleviate the pump pain.

“Oil markets have focused on macro this week,” said Keshav Lohiya, founder of consultant Oilytics. “However, we wonder what 25 basis point or even 50 basis point increases will do when the bulk of the inflation is coming from commodities.”

GLJ
GLJ

Crude is still up more than 50% this year as rebounding demand combined with upended trade flows from Russia to squeeze the market. Prices could withstand an economic slowdown because supplies are tighter than other recessionary periods, S&P Global Inc. Vice Chairman Daniel Yergin said this week.

Prices
  • WTI for July delivery rose 0.9% to $118.66 a barrel at 10:11 a.m. in London.
    • Futures are on track for a 1.6% fall this week.
  • Brent for August settlement added 0.8% to $120.80 a barrel.

As the war in Ukraine continues, focus remains on just the extent to which Russian oil flows will be altered. On Friday, the country’s Deputy Prime Minister Alexander Novak said throughput at the nation’s refineries could fall 10% this year.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE