Oil steady as market awaits clarity on Fed rate hike

LONDON — Oil prices were stable on Tuesday as the market awaited the Federal Reserve’s plans for rate hikes to gauge the impact on the economy and fuel demand. Brent futures for March were up 15 cents, or 0.19%, to $79.80 a barrel by 1036 GMT. U.S. West Texas Intermediate crude rose 32 cents, or…
Oil steady as market awaits clarity on Fed rate hike

LONDON — Oil prices were stable on Tuesday as the market awaited the Federal Reserve’s plans for rate hikes to gauge the impact on the economy and fuel demand.

Brent futures for March were up 15 cents, or 0.19%, to $79.80 a barrel by 1036 GMT. U.S. West Texas Intermediate crude rose 32 cents, or 0.43%, to $74.95.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Two U.S. Federal Reserve officials said on Monday that they expected the Fed policy rate – now at 4.25% to 4.5% – would need to rise in steps to 5.0-5.25% to bring higher inflation rates under control.

Fed policymakers said fresh inflation data out on Thursday will help them decide whether they can slow the pace of interest rate hikes at their upcoming meeting, to just a quarter point increase instead of the larger jumps they decreed for most of 2022.

Thursday’s data “could easily clarify the direction of the financial and oil markets for weeks to come,” said Tamas Varga of oil broker PVM.

He said the dollar would fall if inflation came in below expectations or was below the November reading, Varga added.

A weaker dollar can boost demand for oil, as dollar-denominated commodities become cheaper for holders of other currencies.

U.S. Federal Reserve Chair Jerome Powell is scheduled to speak at a central bank conference at 1400 GMT.

Both WTI and Brent climbed 1% on Monday, after China, the world’s biggest oil importer and second-largest consumer, opened its borders over the weekend for the first time in three years.

China also issued a second batch of 2023 crude import quotas, raising the total for this year by 20% from last year.

But analysts said that a revival of Chinese demand may only give oil prices limited support under downward pressure from the global economy.

“Considering that the recovery of consumption is still at the expected stage, the oil price will most likely remain low and range-bound,” said analysts from Haitong Futures.

Separately, U.S. stockpiles of crude oil and distillates were expected to have fallen last week, a preliminary Reuters poll showed on Monday.

Industry group American Petroleum Institute is due to release data on U.S. crude inventories at 4:30 p.m. EDT (2030 GMT) on Tuesday.

(Reporting by Rowena Edwards in London, additional reporting by Arathy Somasekhar in Houston, and Muyu Xu in Singapore; Editing by Kevin Liffey)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Kohl’s under fresh pressure as Sycamore expresses interest after Acacia made bid
Read More

Kohl’s under fresh pressure as Sycamore expresses interest after Acacia made bid

Author of the article: Reuters Svea Herbst-Bayliss U.S. department store Kohl’s Corp may soon receive a second takeover offer as private equity firm Sycamore Partners prepares to make a bid only days after a consortium backed by activist investment firm Starboard Value proposed buying the company, three sources familiar with the matter said on Sunday.…
‘Action is required’ – what they are saying at U.N. climate talks
Read More

‘Action is required’ – what they are saying at U.N. climate talks

Author of the article: GLASGOW — COP26, a U.N. conference https://www.reuters.com/business/cop critical to averting the most disastrous effects of climate change, is running for the first two weeks of November. Here are some quotes from participants and observers on Friday, Nov. 12: NOTE ON A WINDSCREEN OF A MERCEDES SUV PARKED IN GLASGOW “ATTENTION: Climate…