5/16/2023 0 Comments Fxfactory economic calendar![]() The closure or curtailment of oil production at multiple oilfields in the semi-autonomous Kurdistan area of northern Iraq following the stoppage of the northern export pipeline has propelled oil prices upwards. Oil Prices Rise Due to Reduced Output in Kurdistan Region Following Export Pipeline Halt The deceleration of inflation is viewed as a positive sign for oil prices since it suggests that the Federal Reserve may not take aggressive measures to raise interest rates, resulting in higher demand from investors for commodities and equities. Personal Consumption Expenditure (PCE) index – the primary measure of inflation favored by the Federal Reserve – showed a monthly increase of 0.3% in February, which is a slower pace compared to January’s 0.6% rise and the anticipated 0.4% increase in a Reuters survey. Inflation Decelerates in February, Boosting Oil Prices as Investors Anticipate Fed’s Relaxed Monetary Policy Therefore, lower interest rate expectations might not be enough to support oil prices in the short term. The prolonged economic scarring of the past month is likely to slow the economy and may even cause a recession. The benchmarks reached their lowest point since 2021 on March 20 following large bank failures, and while they have since recovered some of the losses, they are still trading well below the levels at the beginning of March. However, Brent and WTI are also expected to record monthly declines of 5% and 2% respectively, which are their steepest since November. ![]() Daily June WTI Crude Oil Oil Benchmarks Reach Lowest Point Since 2021 Amidst Bank Failures ![]()
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