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On August 19th, Suren Thiru, chief economist at the Institute of Chartered Accountants in the UK (ICAEW), stated that the UKs inflation rate rebounded to 2.9% in July, reigniting the possibility of further interest rate hikes by the Bank of England. "The July increase is unlikely to be a one-off event. Drought has led to higher food prices and soaring energy costs, increasing the likelihood of inflation exceeding 3.5% later this year, especially given the ongoing disruptions to traffic in the Strait of Hormuz," he noted. He pointed out that the decline in services inflation is unlikely to reassure Bank of England policymakers, as it appears to reflect a temporary reduction in VAT on tourist attractions and childrens meals, rather than a cooling of underlying price pressures. While these figures are unlikely to trigger an interest rate hike in September, they increase the likelihood of further monetary tightening before the end of 2026.August 19th - Tesla has released a large-scale model of a steamed bun. It is reported that the Tesla infotainment system is now gradually rolling out this feature.On August 19, 2026, Pan Gongsheng, Governor of the Peoples Bank of China, met with a delegation from the Macau Banking Association led by Wong Sin Man, Chairman of the Administrative Committee of the Monetary Authority of Macau. The two sides exchanged views on the current macroeconomic and financial situation, deepening cooperation on financial market connectivity between the two places, and supporting Macaus economic prosperity and development.According to customer service hotlines and Reuters, Moscow gas stations have imposed restrictions on gasoline sales.Argus Research: Raises its target price for ConocoPhillips (COP.N) from $136 to $153.

Oil costs increase as supply restrictions trump economic worries

Charlie Brooks

Jul 05, 2022 11:12


Oil prices climbed on Monday as supply worries spurred by a decrease in OPEC production, unrest in Libya, and sanctions against Russia trumped fears of a worldwide recession that would diminish demand.


In June, Euro zone inflation hit an all-time high, boosting the case for rapid rate rises by the European Central Bank, while consumer sentiment in the United States reached an all-time low.


Brent oil rose $2.26, or 2%, to $113.89 a barrel as of 12:47 p.m. ET (1648 GMT), after shedding more than $1 in early trading. The price of U.S. West Texas Intermediate (WTI) crude rose $2.20, or 2%, to $110.63 despite the lack of trading activity over the Fourth of July holiday.


According to a Reuters survey, the Organization of the Petroleum Exporting Countries (OPEC) failed to meet its June goal of increasing production.


Thursday, authorities in OPEC member Libya declared force majeure at the Es Sidr and Ras Lanuf ports and the El Feel oilfield, claiming a reduction of 865,000 barrels per day in oil output (bpd).


Meanwhile, more than two weeks of unrest have caused Ecuador to lose almost 2 million barrels of production, according to Petroecuador, the country's state-owned oil company.


This week, a strike in Norway may restrict supply from the biggest oil producer in Western Europe and reduce overall petroleum production by 8 percent.


"This background of rising supply interruptions clashes with a probable shortage of spare production capacity among Middle Eastern oil producers," said Stephen Brennock of oil trader PVM, referring to the producers' limited ability to pump more oil.


And prices will climb if new oil production does not reach the market shortly.


On Monday, British Prime Minister Boris Johnson asked OPEC+ to raise oil output to tackle the growing cost of living.


As a consequence of Russia's invasion of Ukraine, supply concerns have sent Brent oil prices close to 2008's record high of $147 a barrel.


As a consequence of restrictions on Russian oil and limited gas supplies, surging energy prices have driven inflation in certain countries to multi-decade highs and stoked fears of a recession.


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