EUR/USD 1.16303
-0.006%
Gold 4073.88
-0.738%
Oil 61.499
0.298%
USD/JPY 152.971
0.097%
GBP/USD 1.33222
0.082%
GBP/JPY 203.794
0.178%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 27th, the Bank of Japan (BOJ) held its first meeting since loose monetary policy advocate Sanae Takaichi became prime minister on Thursday, with the bank widely expected to hold interest rates steady. Of the 50 Bank of Japan (BOJ) observers surveyed, only 10% expected the central bank to raise borrowing costs from 0.5% after the two-day meeting. Last month, over a third expected action at this weeks meeting. Bank of Japan Governor Kazuo Ueda and his committee are searching for the right moment to raise borrowing costs to their highest level since 1995, and Takaichis presence exacerbates their decision-making difficulties. "The BOJ will hold its ground," said Shinichiro Kobayashi, chief economist at Mitsubishi UFJ. "They wont say it explicitly, but because of Takaichi, theyre having to wait and see." What is clear is that market expectations for a rate hike this week are very low, meaning a surprise hike could shock financial markets. Kobayashi noted, "If the BOJ raises rates this time, theres a risk of market volatility."International Energy Agency Executive Director Fatih Birol said that by 2030, global renewable energy installed capacity will fall 1 terawatt short of the target of tripling it.According to Yonhap News Agency: Kevin Kim has been officially appointed as the acting U.S. ambassador to South Korea.Japanese Chief Cabinet Secretary Minoru Kihara: Foreign exchange has both positive and negative effects on the economy.Japanese Chief Cabinet Secretary Minoru Kihara: We are closely monitoring excessive and disorderly fluctuations in the foreign exchange market.

Oil prices steady after precipitous declines due to weak U.S. demand

Haiden Holmes

Jul 22, 2022 11:27

82.png


Oil prices stayed almost unchanged in early trading on Friday, after a loss of around 3 percent in the previous session due to deteriorating demand in the United States, the biggest oil consumer in the world, and a rise in output from Libya.


Brent oil prices rose 17 cents, or 0.2%, to $104.03 per barrel at 00:41 GMT, while U.S. West Texas Intermediate (WTI) crude futures were constant at $96.35 per barrel.


WTI has been hammered over the last two days as a result of the publication of data suggesting that U.S. gasoline consumption during the height of the summer driving season decreased by around 8% from the previous year due to record pump prices.


"At 8.52 million barrels per day, seasonal demand is at its lowest level since 2008," experts at ANZ Research said in a study.


The decrease in WTI has positioned the contract for a loss of 1.3% this week, its third consecutive weekly loss.


Brent was bolstered by signs of healthy demand in Asia, putting it on course for its first weekly gain in six weeks.


Despite increasing prices, gasoline and distillate fuel demand in India hit all-time highs in June, with refined product consumption 18 percent higher than a year earlier and Indian refineries operating at their busiest levels ever.


An analyst at RBC, Michael Tran, said in a note, "This signals much more than a solid return from COVID-affected years."


Brent's gains were limited this week by the return of production at important Libyan oil fields.


Meanwhile, the European Central Bank (ECB) raised rates more than expected on Thursday in an effort to curb inflation, with ECB President Christine Lagarde warning that inflation risks had increased due to the likelihood that the Ukraine conflict will continue for an extended period of time and that energy prices will remain elevated for an extended period of time.


"Is the horizon cloudy? Clearly it is, "Lagarde said.


She said that the baseline assumption of the central bank is that neither this year nor next would experience a recession.

Suggestion