Menu
BW CFO World
Community for Finance Professionals, Consultants and allied businesses
  • Home
  • News
  • Videos
  • Articles
    • Credit & Capital
    • Economic Trends
    • Financial Compliance
    • Financial Leadership
    • Financial Management
    • Financial Reporting
    • Financial Strategy
    • Risk Management
    • Taxation
  • Featured
  • Nominate for Awards
Close Menu
exports 1
July 15, 2022

Oil Prices Drop Ahead Of Potential Large US Rate Hike

Urvi Srivastava Credit & Capital, Economic Trends oil prices, US Rate Hike, West Texas

Oil prices have tumbled in the past two weeks on recession concerns despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya

Oil prices fell on Thursday as investors focused on the prospect of a large US rate hike that could stem inflation but at the same time hit oil demand. Brent crude futures for September were down 18 cents to USD 99.39 a barrel at 0727 GMT after settling below USD 100 for the second straight session on Wednesday. US West Texas Intermediate crude for August delivery was at USD 95.84 a barrel, down 43 cents. Oil prices have tumbled in the past two weeks on recession concerns despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya. 

“Clearly, focus is now on the demand side of the oil equation. Yesterday’s weekly EIA (US Energy Information Administration) report showed sizeable builds in product inventories,” Tamas Varga, analyst at PVM Oil Associates, said. “Collateral damage of growing fears of inflation is the strong dollar, which is also bearish for oil prices. Interestingly, physical markets are still strong but the change in sentiment of financial investors is currently the dominant driving force.” The US Federal Reserve is seen ramping up its battle with 40-year high inflation with a supersized 100 basis points rate hike this month after a grim inflation report showed price pressures accelerating. 

The Fed rate hike is expected to follow a similar surprise move by the Bank of Canada on Wednesday. Investors also flocked to the dollar, often seen as a safe haven asset. The dollar index hit a 20-year high on Wednesday, which makes oil purchases more expensive for non-US buyers. Worries of COVID-19 curbs in multiple Chinese cities to rein in new cases of a highly infectious subvariant have also kept a lid on oil prices. China’s daily crude oil imports in June sank to their lowest since July 2018, as refiners anticipated lockdown measures to curb demand, customs data showed on Wednesday. Data from the US Energy Information Administration also point to slackening demand, with product supplied slumping to 18.7 million barrels per day, the lowest since June 2021. Crude inventories rose, bolstered by another big release from strategic reserves. 

US President Joe Biden will on Friday fly to Saudi Arabia, where he will attend a summit of Gulf allies and call for them to pump more oil. However, spare capacity at the Organization of the Petroleum Exporting Countries is running low, with most of the producers pumping at maximum capacity, and it is unclear how much extra Saudi Arabia can bring into the market quickly.

(Reuters)

Avatar

Urvi Shrivastav

→ Urvi Shrivastav

Indian Shares End Lower As Public Sector Banks, Tech Stocks Fall Maharashtra Govt Cuts VAT On Petrol By Rs 5, Diesel By Rs 3 Per Litre

Related Posts

SBI General Insurance CFO

Economic Trends, Financial Leadership, Financial Reporting

CFO Plays Multiple Roles Beyond Finance Sector: CFO, SBI General Insurance

rupee

Economic Trends, Financial Reporting

Rupee Posts 8 Paise Up To 81.60 Against USD Led By Foreign Capital Inflows

economy

Economic Trends, Financial Reporting, Global News

Global Economy May Slowdown More In 2023, According To Big Banks

Selected Stories

  • MayankSynergizing finance, strategy and management: The multipronged role of today’s CFO

    Read more

  • NECNEC Corporation elevates India CFO Mayank Khandelwal to Head of Finance for Global Regional Headquarters and Country Affiliates

    Read more

  • Screenshot 2023-04-18 190754Ramesh Bafna Appointed As The New CFO Of Zepto; Succeeding Jitendra Nagpal

    Read more

  • Screenshot 2023-03-28 180755Infobip appoints Richard Kraska as Chief Financial Officer

    Read more

  • 1494568857_NoPMEQ_CFO-470CFO – From ‘Finance’ To ‘Futuristic’

    Read more

Movements

  • Screenshot 2023-03-28 180755Infobip appoints Richard Kraska as Chief Financial Officer
  • zUah2lDb_400x400Deloitte India Named Romal Shetty As CEO For Four-Year Term
  • cfo imageVishnuhari Pareek Named As Head Of Finance At Arkam Ventures
  • thumbnail_Sidharth1Siddharth Sehgal Is New CFO Of BeatO
  • Business men giving a handshake. Business conceptRamamurthy Becomes MD, CEO of BSE, SEBI approves appointment

Categories

  • Accounting
  • CFO Stance
  • Credit & Capital
  • Economic Trends
  • Featured
  • Financial Compliance
  • Financial Leadership
  • Financial Management
  • Financial Reporting
  • Financial Strategy
  • Financial Technologies
  • Global News
  • Interview
  • Movements
  • Risk Management
  • Taxation

Recent Comments

    Back To Top
    BW CFO World
    • Home
    • News
    • Videos
    • Articles
      • Credit & Capital
      • Economic Trends
      • Financial Compliance
      • Financial Leadership
      • Financial Management
      • Financial Reporting
      • Financial Strategy
      • Risk Management
      • Taxation
    • Featured
    • Nominate for Awards
    © Copyright BW BUSINESSWORLD 2018. All Rights Reserved.