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Market news: The Israeli Defense Minister has approved strikes against a series of targets inside Iran.According to military sources, airstrikes targeted positions held by the Iraqi Shiite Popular Mobilization Forces in the Al-Khem region on the Syrian-Iraqi border.March 25th - According to Israeli sources, the Israeli military intercepted missiles launched by Iran targeting central Israel on the 25th local time. Reports indicate that Iran launched four rounds of missiles at Israel within 40 minutes. Following the missile launches, air raid sirens were sounded in several locations in central Israel, including Tel Aviv and Jerusalem. Israel is investigating to determine whether Iran used cluster munitions in the attack.Citigroup raised its price target for Amazon (AMZN.O) from $265 to $285.On March 25th, Deutsche Bank analyst Sanjay Raja stated in a report that given the sharp rise in energy prices, the Bank of Englands return to its 2% inflation target seems a distant memory. He said, "The rebound in inflation will end any discussion of interest rate cuts this year. Moreover, the risk that the Bank of England might change policy and raise interest rates can no longer be ignored." Raja noted that oil prices rose nearly 7% in March, and a similar increase is possible in April. Potential spillover effects from other consumer price index baskets are also increasing, with fertilizer prices rising and shipping costs soaring, making a second-round effect a significant possibility. He predicts that inflation will peak at around 3.5% later this year.

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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