EUR/USD 1.12424
0.206%
Gold 4181.92
0.273%
Oil 95.571
-0.539%
USD/JPY 157.998
0.014%
GBP/USD 1.33198
0.337%
GBP/JPY 210.455
0.334%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Fitch: Budget performance is expected to be mixed in 2026-2027, with a weaker outlook for Ukrainian cities closer to the front lines.Fitch: As the war continues, cities across Ukraine are facing increasing budgetary pressures.On October 16th, Commerzbank analyst Thu Lan Nguyen stated in a report that although recent positive UK economic data has boosted market expectations for a Bank of England interest rate hike, fiscal risks in the UK could still be a negative factor for the pound. UK economic growth data for August exceeded market expectations for the fourth consecutive month. Nguyen pointed out that the resilience shown by the UK economy provides room for further interest rate hikes by the Bank of England and also eases the pressure on Chancellor of the Exchequer Healy. Healy remains committed to advancing the deficit reduction target when the budget is announced on October 28th. However, Nguyen warned, "Given the experience of the past few years, the potential risks that still exist in the UKs fiscal plan should not be underestimated."According to Interfax news agency, Russian Foreign Minister Sergey Lavrov will visit Iran on October 19 and Bahrain on October 18.On October 16th, Rahul Anand, head of the IMFs Japan mission, stated on Friday that the IMF expects the Bank of Japan to raise interest rates once more, bringing the policy rate closer to the neutral level. However, given increased global uncertainty, subsequent monetary policy adjustments should remain flexible. Currently, the Bank of Japan is gradually moving towards its neutral interest rate level. The IMF continues to estimate Japans neutral interest rate range at 1.1% to 2.2%, with a median estimate of approximately 1.5%. The Bank of Japans current policy rate of 1.25% is already within this estimated range. Anand anticipates that inflationary pressures in Japan will persist as energy prices remain high and businesses more frequently pass on cost increases to consumers. He expects Japans inflation rate to rise above 2% and gradually return to that level by the end of 2027.

A weakening dollar and low U.S. diesel inventories lifted crude oil

Skylar Williams

Oct 14, 2022 15:08

48.png


As Saudi Arabia and the US disagreed over OPEC+'s output cuts, oil prices rose in Asian trade on Friday, supported by a weaker currency and dropping diesel supplies.


Brent crude prices rose 29 cents, or 0.3%, to $94.86 a barrel by 02:42 GMT, while WTI crude futures rose 31 cents, or 0.35 %, to $89.42.


Both contracts dropped almost 3% after two weeks of rises owing to recession fears.


"The weaker U.S. dollar and the significant rebound in risk assets helped oil prices," said CMC Markets analyst Tina Teng. Dollar-denominated commodities like oil are cheaper for non-dollar holders when the dollar weakens.


"OPEC+'s output cut will continue to underpin oil prices, paired with a possible rise in China's demand in the fourth quarter if Beijing removes COVID limitations," Teng said.


China, the world's largest crude oil importer, is fighting a COVID recovery following its week-long National Day holiday earlier this month and before a pivotal Communist Party Congress when President Xi Jinping is expected to extend his reign. The country has a zero-COVID policy despite a low infection rate.


Saudi Arabia and the US opposed last week's OPEC+ plan to cut oil supply. Saudi Arabia, OPEC's de facto leader, called Washington's concerns "not based on facts" and said that delaying the cut by one month would have hurt the economy.


The White House claims that the Saudis pressured other OPEC members to vote in their favor after receiving research showing that the reductions could hurt the global economy. Both nations' officials will meet soon.


Oil prices were also buoyed by a strong fall in distillate inventories as heating oil demand is predicted to surge as winter approaches.


Thursday, the U.S. Energy Information Administration announced that distillate stockpiles, which include diesel and heating oil, fell by 4.9 million barrels to 106.1 million barrels, their lowest level since May, compared to estimates of a 2 million-barrel decline.


US crude oil and gasoline inventories rose more than expected. In the week ending October 7, the EIA reported a 9.9 million-barrel increase in oil stockpiles to 439.1 million, significantly exceeding the 1.8 million projected by analysts in a Reuters poll. [EIA/S]


"The market ignored a 10-million-barrel increase in U.S. crude inventories last week and instead focused on a 4.9-million-barrel decline in distillate inventories ahead of heating demand," said ANZ Research in a Friday note, adding that OPEC+'s oil output cut and Russian oil sanctions "create a perfect backdrop for volatile prices."

Suggestion