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US President Trump: I think we are closer to our goal (reaching a ceasefire between Russia and Ukraine) than ever before.On December 16th, the FBI announced the arrest of four suspects on December 15th for plotting bomb attacks at multiple locations in California on New Years Eve. FBI Director Cash Patel posted on social media that the FBI thwarted a "credible and imminent terrorist threat" and arrested four individuals with ties to the Los Angeles area. These individuals identified themselves as members of a radical wing of the far-left group "Turtle Island Liberation Front" and are suspected of planning attacks using improvised explosive devices at five different locations in the Los Angeles area on New Years Eve. "Turtle Island" is an English name for North America.On December 16th, the Argentine government of President Millai announced adjustments to its monetary policy, stating it would begin an initiative to accumulate its depleted foreign exchange reserves. This represents a step closer to the free-floating exchange rate that investors have long desired. Starting in 2026, the pesos trading band will expand at the same rate as monthly inflation, instead of the current 1%. Novembers price increases of 2.5% mean that the trading band could expand at more than twice the current rate in the short term. The central bank stated on Monday that it will also begin accumulating reserves, with a base case scenario target of purchasing $10 billion next year, the specific amount potentially increasing based on currency demand. Following this news, Argentine sovereign bonds surged across the board. The more liquid bonds maturing in 2035 rose by more than 1 cent, reaching nearly 73 cents.On December 16th, local time, Ukrainian President Volodymyr Zelensky and German Chancellor André Merz held a joint press conference in Berlin. Zelensky stated that the US delegation did not make any demands on Ukraine regarding territorial concessions, but merely conveyed Russias position. Regarding the question of whether the US demanded Ukraine withdraw from the Donetsk region, Zelensky said: "I dont think the US made any demands. I believe we are strategic partners. Therefore, I would put it this way: we have heard statements from the US regarding Russian territorial claims or demands. We consider these to be Russian demands." He also stated that Ukraine had conveyed its position to the US.Lockheed Martin (LMT.N) has completed production of its first F-16 Block 70 fleet, delivering them to Bulgaria and Slovakia.

Oil Prices Tumble 5% When the IMF Lowers Its Growth Forecast

Charlie Brooks

Apr 20, 2022 09:41

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Prices fell despite decreased production from OPEC+, which produced 1.45 million barrels per day (bpd) less than its goal in March, as Russian supply started to plummet as a result of Western sanctions over Russia's invasion of Ukraine, according to a report obtained by Reuters from the producer alliance.


Russia produced around 300,000 barrels per day less than its aim of 10.018 million barrels per day in March, according to secondary sources.


OPEC+, which consists of OPEC and its partners headed by Russia, decided last month to increase oil production by 432,000 barrels per day (bpd) in May, defying demand from big customers to produce more.


The IMF cut its global economic growth projection by almost a full percentage point, citing Russia's invasion, and warned that inflation has become a "clear and present risk" for many nations.


The negative prognosis exacerbated pricing pressure already exerted by the dollar's two-year high. A stronger dollar increases the cost of commodities priced in dollars for holders of other currencies, which might depress demand.


President of the Chicago Federal Reserve Bank Charles Evans said Tuesday that the Fed may boost its policy rate goal range to 2.25 percent to 2.5 percent by year's end, but would likely need to raise rates further if inflation continues elevated.


Meanwhile, St. Louis Federal Reserve Bank President James Bullard said Monday that US inflation is "far too high," as he argued for raising interest rates to 3.5 percent by the end of the year in order to lower what have already reached 40-year highs.


The IMF's reduced growth prediction, along with the Strategic Petroleum Reserves' warning on Monday that emergency inventories declined by 4.7 million barrels, is "creating some worry," according to Phil Flynn, an analyst with Price Futures Group.


Concerns about demand growth were already in the spotlight after a preliminary Reuters poll on Monday that indicated 8849|US crude oil inventories likely increased last week.


China's economy faltered in March, exacerbating an already bleak picture exacerbated by COVID-19 restrictions and the Ukraine war.


China, the world's top oil importer, may see an increase in fuel consumption as industrial units prepare to restart in Shanghai.


Tuesday's price fall follows a more than 1% increase on Monday, when oil prices reached their highest level since March 28 due to Libyan oil supply delays. Libya's National Oil Corporation (NOC) warned Monday of a "painful wave of closures" and imposed force majeure on certain production and exports as eastern troops stepped up their embargo of the industry amid a political deadlock.


NOC imposed force majeure at the Brega oil port on Tuesday.


Boris Johnson, the Prime Minister of the United Kingdom, emphasized the need of increasing pressure on Russia via more sanctions and diplomatic isolation during a call with Western leaders on Tuesday.


The prospect of a European Union-imposed embargo on Russian oil kept the market on edge. French Finance Minister Bruno Le Maire stated Tuesday that an EU-wide ban was being considered.

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