The U.S. oil benchmark is the highest in seven years

U.S. crude oil prices hit a seven-year high on Monday on fears that fuel demand will recover faster than last year’s economic downturn.

US WTI oil was trading at more than 81 81 a barrel, the highest since 2014 for the original benchmark price.

Prices fell last week when U.S. Energy Secretary Jennifer Granholm told the Financial Times that the Biden administration was considering entering the country’s strategic stockpile to help reduce the price of fuel oil at the pump.

American consumers have been paying more for fuel at the pump since 2001, an administration’s political liability that has eroded its popularity.

But following the Energy Department’s comments on Thursday, prices recovered quickly, saying there were no plans to release government-led supplies “at this time”, reviving continued supply concerns this week.

Oil market analyst Roger Diwan said: “The market is plagued by fears of strong demand, fears of a rally from gas and electricity, fears of losing the assembly and the fear of being ruled out by all of them: supply concerns.” On the advice of IHS Markets.

The move has strengthened Wall Street stock markets, with blue-chip S&P 500 rising as shares of power producers, while government bond prices have softened as stable interest securities holders worry about eroding their returns on inflation.

The S&P 500 index rose 0.5 percent as energy stocks rose along with bank shares, boosting traders ‘tendency to do better in raising interest rates, which boosted investors’ profit margins. The Nasdaq Composite rose 0.5 percent, led by energy stocks, while European stocks traded flat on the 600-share index.

The U.S. Treasury bond market was closed for the Columbus Day holiday.

In the fuel market on Monday, the European gas contract for November delivery stood at. 3.4.55 per megawatt-hour, double the level they gave in mid-August. Brent crude, the main international benchmark, topped সোমবার 84 a barrel on Monday, the highest since October 2018.

Economists surveyed by Reuters on Wednesday expect data that U.S. consumer prices rose 5.3 percent in September from the same period last year, marking the fourth consecutive month that inflation has peaked at 5 percent in the world’s largest economy.

Long-term inflation has put pressure on the Federal Reserve, which has already indicated that it is poised to cut এক 120 billion a month in epidemic-response bond purchases to raise the cost of U.S. orrow from a record low.

“This creates an environment that is conducive to monetary policy mistakes,” said Greg Peters, head of multi-sector and strategy at PGIM, a bond investor.

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“The cost of petrol and heating and all the things plagued by the global supply chain are external factors that have nothing to do with the central bank.”

He added that the price of the financial market was the economic stagnation that could cause the rate to rise because central banks have potentially become “orthodox”.

Investors came out of the UK gilt on Monday, sending government orrow spending benchmark measurements to nearly two-and-a-half-year highs as they increased their bets on UK rate hikes.

The yield on UK 10-year government bonds, which went in the opposite direction of its value, rose to 0.06 percentage points for a 1.2 per cent breach on Monday for the first time since May 2019. Then it settled 0.03 of a percentage point higher than 1.192 percent.

“The bond market focuses too much on the UK because they show the potential to grow [interest] The rate is very fast, ”said Ann Beudu, Amundi’s Global Fixed Income Portfolio Manager.

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