EUR/USD 1.16048
0.293%
Gold 4309.27
2.342%
Oil 79.210
-4.429%
USD/JPY 160.134
-0.041%
GBP/USD 1.34402
0.221%
GBP/JPY 215.230
0.181%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 15th, European Central Bank President Christine Lagarde stated that high energy prices are beginning to spread to other sectors of the economy. She said, "Weve started to see the indirect effects of inflation almost everywhere in recent weeks." The ECB raised interest rates last week for the first time since 2023, as the Middle East war exacerbated price pressures. Officials did not rule out a second rate hike immediately at the July meeting, with policymakers, including Bundesbank President Jean-Claude Nagel, saying that even if the war in Iran ends soon, prices could remain high. However, rising borrowing costs have raised concerns among some ECB watchers about the economic impact. "I hear criticism—often from France, and I understand that criticism—saying, We are taking measures that will stifle economic growth," Lagarde said. "But I must curb inflation if it is awakened, because once inflation gets out of control, it will be much more difficult and costly to bring it back under control. Prolonged inflation is unacceptable for consumers and businesses, and I would have failed in my mission."European Central Bank President Christine Lagarde: Common euro debt is a necessary condition for the success of a capital markets union.On June 15th, Futures reported that the domestic refined oil market showed a divergent trend in early June: retail prices saw a significant decline, but wholesale prices had limited room for further drop and gradually stabilized and began to rise, leading to a narrowing of the wholesale-retail price spread for gasoline and diesel from its year-to-date high. As of the close of trading on June 12th, the wholesale-retail price spread for gasoline from major domestic oil companies and Shandong local refineries narrowed by 19.09% and 16.85% respectively compared to the beginning of the month; the wholesale-retail price spread for diesel narrowed by 19.93% and 18.77% respectively. However, recent negative news has intensified, and demand has been insufficient, leaving room for further declines in wholesale gasoline and diesel prices. Before the retail price adjustment window opens, the wholesale-retail price spread for gasoline and diesel is expected to widen.Switzerlands producer/import price index fell 0.4% month-on-month in May, compared with 0.80% in the previous month.Switzerlands producer/import price index fell 1.8% year-on-year in May, compared with a previous reading of -2.00%.

Oil Prices Fall as 'Imminent' Iran Nuclear Deal Becomes Visible

Haiden Holmes

Aug 22, 2022 10:52

8.png


On Monday, oil prices dropped significantly on reports that Iran and Western nations were close to an agreement that would ease sanctions on the country's petroleum exports.


West Texas Intermediate futures, the U.S. crude benchmark, fell more than 1% to $89.39 per barrel as of 20:01 ET, while London-traded Brent oil futures down 0.5% to $95.59 per barrel (0002 GMT).


Al Jazeera, a Qatari news outlet, reported over the weekend that a nuclear agreement with Iran was 'imminent,' while other sources indicated that Tehran was prepared to withdraw its demand that the Islamic Revolutionary Guard Corps be removed from the State Department's List of Foreign Terrorist Organizations.


Iran's desire for the corps was a major obstacle to the accord and had impeded EU-mediated negotiations with the United States to this point.


Al Jazeera said that the conclusion of an agreement will result in sanctions against 17 Iranian banks and 150 economic organizations being eased. In addition, Tehran will be authorized to export 50 million barrels of oil per day four months after the signing of the pact.


It is estimated that the decision will instantly release more than 1 million barrels of oil per day onto the market, which will have a negative effect on oil prices.


Nonetheless, this increase in supply may push the Organization of the Petroleum Exporting Countries to implement measures to restrict output. Oil prices surged late in the previous week due to speculation over supply restrictions, but they concluded the week in the red.


In recent weeks, oil prices dropped to six-month lows as speculators feared a demand deficit caused by a worldwide economic slowdown and recession. Indicators of economic stress in the world's largest oil importer, China, have been of particular concern to oil markets. This year, Beijing's zero-COVID plan has led to a succession of COVID lockdowns that have crippled the Chinese economy.


Nonetheless, statistics from the previous week's U.S. oil inventories indicated that demand in the world's largest economy was recovering from a downturn. Nonetheless, a further tightening of monetary conditions by the Federal Reserve could threaten this recovery.

Suggestion