Oil Slides on Clues About Fed Policy and Rumours of Hormuz Deal
Brent and West Texas Intermediate crude fell as traders weighed a possible Federal Reserve rate hike and efforts to reopen Strait of Hormuz shipping.
- Oil prices settled lower on Friday, with both benchmarks ending the week down as traders evaluated Federal Reserve hints and rumors regarding shipping through the Strait of Hormuz.
- Following comments by new Fed Chairman Kevin Warsh pointing to a possible rate hike later this year to curb inflation, oil prices descended further, said Phil Flynn, senior analyst at the Price Futures Group.
- On Thursday, commodity vessel traffic through the Strait of Hormuz fell to seven ships, down from 17 a day earlier and below the 10-day average of 15, preliminary shipping data showed.
- Mediators are stepping up efforts to reopen the Strait of Hormuz, as Tehran agreed to draw up conditions to restore normal traffic after a Qatari emissary pressed Iranians to respect freedom of navigation.
- Goldman Sachs estimated recent Gulf exports at 15 million to 16 million barrels per day, remaining below pre-war levels, while analyst John Evans of PVM Oil Futures noted global refinery issues remain 'hitched firmly to this bumpy wagon of war.
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Oil falls on Fed signals, prospects for restoring Hormuz shipping
Houston, Aug. 29 (SANA) Oil prices settled lower Friday and recorded weekly losses as traders weighed U.S. monetary policy signals and prospects for restoring normal shipping through the Strait of Hormuz. Brent crude futures fell 39 cents, or 0.43%, to $89.31 a barrel, while U.S. West Texas Intermediate crude dropped 13 cents, or 0.16%, to $83.40. Brent lost more than 5% for the week and WTI more than 4%. Prices faced further pressure after new …
Oil settles lower on clues about Fed policy, rumors of Hormuz deal
On Friday, oil prices dipped, driven by signals from the Federal Reserve and circulating rumors regarding the Strait of Hormuz. Market traders assessed the possibility of rate hikes by the U.S. Federal Reserve aimed at battling inflation. Additionally, talks of a potential agreement to reopen the Strait influenced the market dynamics, which were affected by inconsistent oil flows, as U.S. officials addressed Venezuelan crude reserves.
Crude oil fell today due to a reduced risk of supply disruptions, while traders monitor developments in the Middle East and efforts to reopen the Strait of Hormuz, Trading Economics reported.
Crude Oil Markets Plunge Over 4% as Fed Tightening and Hormuz Negotiations Intensify
Crude oil tumbled over 4% this week as Fed Chairman Warsh hinted at rate hikes, Strait of Hormuz deal talks advanced, and inventory data pressured markets. The post Crude Oil Markets Plunge Over 4% as Fed Tightening and Hormuz Negotiations Intensify appeared first on Blockonomi.
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