NEW YORK: Oil price s were steady on Thursday as markets weighed the possibility of an aggressive and unforecast rate hike for a steeper rise in energy demand.
After rising more than 1% in early trade, Brent crude futures settled down 14 cents, or 0.2%, at US$91.41 a barrel. U.S. Texas Intermediate crude, which rose more than $2 earlier in the day, settled up 22 cents, or 0.3% to $89.88 a barrel.
After U.S. inflation data came in on Thursday at its hottest in 40 years, St. Louis Federal Reserve Bank President James Bullard said he wanted a full percentage point of interest rate hikes by July 1.
Interest rates futures showed a 60% chance of a 50-basis-point hike in March after Bullard’s comments, and U.S. stock markets fell.
The dollar gave up some of its earlier losses. A stronger greenback makes oil and other commodities more expensive for those holding other currencies.
” Price s are confused between what appears to be strong inventory statistics and signs that the Fed is going to raise rates quicker than expected in 2022,” said Scott Shelton, energy specialist at United ICAP.
On Wednesday, oil price s rallied after data showed crude inventories fell unexpectedly last week to their lowest since October 2018, while fuel demand hit a record high.
After the data, oil price s reversed a slide spurred by the resumption of indirect U.S.-Iran nuclear talks a day earlier. A deal could lift U.S. sanctions on Iranian oil and ease global supply tightness.
Earlier this week, crude benchmarks hit seven-year highs on political concerns, and as a robust demand recovery from the coronavirus pandemic has kept inventories at fuel hubs globally at multi-year lows.
On Thursday, the Organization of Petroleum Exporting Countries said world oil demand might rise even more steeply this year as the global economy posts a strong recovery.
The report also showed OPEC undershot a pledged oil output rise in January under its pact with allies to gradually unwind record output cuts put in place in 2020.
Overall, thin supplies of crude oil , low storage and global output that is nearing a maximum are driving up price s, according to Mitsubishi UFJ Financial Group (MUFG).- Reuters
- The world on the brink of war? Iran's allies China and Russia join Europe in urging 'restraint' as oil prices surge and stock markets plunge after American killing of top general Qassem Soleimani
- Wall Street edges higher as Federal Reserve indicates rate hike is unlikely
- US Federal Reserve cuts interest rates for first time in a decade and Wall Street tumbles
- Donald Trump urges Fed 'boneheads' to cut interest rates to negative
- 'Crude oil surges to 3-month high even as OPEC cuts are questioned'
- Zinc prices may rise towards Rs 195/kg on MCX after phase one trade deal
- Fuel Price Hike: Petrol, Diesel Prices Continue To Surge Amid Tension In Middle East
- ASX to rise as Fed official calls for interest rate cut to protect US economy from 'disaster'
- RBI Monetary Policy Update: Central bank keeps repo rate unchanged at 6.5%
- CORRECTED-GLOBAL MARKETS-China lifts Asian shares; oil up on drawdowns, Mideast tensions
- China lifts Asian shares; oil up on drawdowns, Mideast tensions
- Yearender: U.S. Fed's sharp policy U-turn in 2019
- Global markets steady despite further falls in Chinese shares
- US Federal Reserve expected to keep interest rates on hold
- Trading a dove for two hawks: The Fed's 2020 voters
- $8Bln Shock: 10-Minute Gold Selloff Sets Markets in Motion as Price Drops
- UPDATE 2-NZ central bank in neutral as its holds rates at record low
- Despite rising oil imports, energy security plan on track: Dharmendra Pradhan
- UPDATE 2-Egypt's central bank makes third straight cut to interest rates
- Rupee skids 16 paise against U.S. Dollar on higher crude prices
Oil price steady amid prospects of aggressive Fed rate hike have 601 words, post on www.thestar.com.my at February 11, 2022. This is cached page on Law Breaking News. If you want remove this page, please contact us.