Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 03 23T003651Z 1 LYNXMPEJ2M00Q RTROPTP 4 GLOBAL OIL - Business Express

Oil dips after Fed comments, US crude stock build


By Stephanie Kelly and Jeslyn Lerh

SINGAPORE (Reuters) -Oil prices fell on Thursday following three sessions of gains, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world’s largest economy, while U.S. crude stocks rose more than expected.

Brent crude futures fell 66 cents, or 0.9%, to $76.03 a barrel by 0420 GMT, while U.S. West Texas Intermediate crude (WTI) dropped 74 cents, or 1.0%, to $70.16.

Both crude benchmarks settled on Wednesday at their highest close since March 14 after the dollar slid to a six-week low.

“Economic risks were being flagged out in the Fed meeting, while higher-than-expected U.S. crude oil stockpiles also dampened some optimism around demand outlook,” said Yeap Jun Rong, market strategist at IG.

However, the weakness in the dollar has been a bright spot in aiding to drive some resilience in oil prices, with some room left for upside in oil prices amid dip-buying seen at the start of this week, Yeap added.

The Fed raised interest rates by a quarter of a percentage point, while indicating that it was on the verge of pausing further increases in borrowing costs, amid recent turmoil in financial markets spurred by the collapse of two U.S. banks.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Powell said on Wednesday that banking industry stress could trigger a credit crunch, with “significant” implications for an economy that U.S. central bank officials projected would slow even more this year than previously thought.

Meanwhile, U.S. crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, latest data from the Energy Information Administration (EIA) showed.

Crude inventories rose by 1.1 million barrels in the week to March 17 to 481.2 million barrels, the highest since May 2021. Analysts in a Reuters poll had expected a 1.6 million-barrel drop.

“Despite all the bearish chatter over the U.S. oil production growth outlook for 2023, overstating cost inflation and lower capex (capital expenditure), the latest EIA weekly report confirms the pivotal role of U.S. oil for global oil markets,” Citi analysts said in a note on Thursday.

Gross exports of crude oil and oil products hit a new high just shy of 12 million barrels per day, way above any other country’s supply levels, the analysts added, citing EIA data.

(Reporting by Stephanie Kelly and Jeslyn Lerh; Editing by Jamie Freed and Jacquelline Wong)

 

Recent Post: