Crude Oil Struggles Following OPEC and US EIA’s Decision.

Crude Oil

Federal Open Market Committee (FOMC) meeting minutes released overnight reaffirmed the hawkish perspective of the bank. However, some acknowledgment of the need for calibration at some point was seen as a way off.

Treasury yields dropped in the US session but have moved up a few basis points across the curve in Asian trading. The US Dollar is faintly steady across the board. The Sterling maintained an increase overnight despite the increasing tension following the Bank of England’s (BoE) withdrawal from the Gilt market after Friday.

Gold is placed just above US$ 1,670 an ounce, while base metals such as iron ore and copper fail to make progress. Australia’s ASX 200 and the AUD experienced little increase, while other APAC equity markets are red on growth concerns.

Crude oil has been struggling today following OPEC and the US Energy Information Administration’s (EIA) decision to cut their outlook for Crude oil demand overnight. In addition, they showed concerns about economic growth, inflation, and Chinese COVID-19-related lock-downs.

The WTI futures contract is barely more than US$ 87 bbl, while the Brent contract is around US$ 92.50 bbl at the print time.

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