Crude oil fell 4% last week on the U.S. supply glut and on rate hike fears

Posted on by Vrasidas Neofytou

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Brent and WTI crude oil prices closed lower by about 4% last week to $83/b and $76,50/b respectively, on concerns over a U. S oil supply glut, hawkish Fed commentary, and stronger dollar despite optimism over China’s fuel demand recovery, and Russian output cuts.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Brent and WTI crude oil prices closed lower by about 4% last week to $83/b and $76,50/b respectively, on concerns over a U. S oil supply glut, hawkish Fed commentary, and stronger dollar despite optimism over China’s fuel demand recovery, and Russian output cuts.

U.S.-based WTI crude oil has fallen in three of the past four weeks, losing nearly 7% in that stretch, in response to a potential supply glut in the country following the inventory build, the SPR sales, and surging shale oil production.

WTI crude oil, Weekly chart

Investors turned bearish last week after the United States reported higher-than-expected crude and gasoline inventories builds over the prior week.

On top of that, the Biden administration also announced plans to release 26 million barrels of crude from the SPR-Strategic Petroleum Reserve which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May.

An economic slowdown could harm fuel demand:

Oil prices have received further pressure lately as investors expect that the stronger-than-expected macroeconomics data (CPI, PPI, jobs reports) could lead to more interest rate hikes by the world’s largest central banks such as the Federal Reserve, ECB, and Bank of England.

Surging interest rates could depress economic activity this year in some of the largest petroleum consumers in the world such as the U.S., China, India, the UK, and the Eurozone, which in turn could fuel a slowdown in oil demand.

Furthermore, a more hawkish Federal Reserve could strengthen the U.S. dollar, making dollar-denominated crude oil more expensive for buyers of other currencies.

Global supply outlook:

Last week, the downward pressure on oil prices came despite the production cuts by Russia and OPEC+ alliance.

Russia plans to cut oil production by 500,000 barrels a day, or around 5% of output in March, in response to the Western powers imposing price caps on its oil and oil products.

This is coming in the heels of pulling out more barrels of oil from the global market, increasing concerns for future oil supply shortages, after the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, last October stated it would cut oil production targets by 2 million barrels per day until the end of 2023.

Gold and Silver sink to multi-week lows on higher rate expectations

Posted on by Vrasidas Neofytou

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold and Silver have been suffering declines this week as the persistently high inflation metrics, the hawkish comments by policymakers, and expectations for higher rate hikes have pushed bond yields and the greenback to yearly highs.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

Gold and Silver have been suffering declines this week as the persistently high inflation metrics, the hawkish comments by policymakers, and expectations for higher rate hikes have pushed bond yields and the greenback to yearly highs.

The dollar-denominated Gold fell as low as $1,820/oz, or nearly 1% down, on Friday morning, posting the lowest level since early 2023, while Silver extended recent losses toward a two-month low of $21,20/oz, or 1.50% down, as the DXY- dollar index rallied to a fresh monthly high of 104.50 mark.

Gold price, Daily chart

Surging dollar and interest rates make the dollar-priced bullions more expensive for buyers with other currencies. At the same time, investors prefer the dollar instead of zero-yielding gold as a haven asset, given that the greenback offers better returns-yields.

Prices of the yellow metal were set to lose between 2% this week, their third straight week in the red, while the prices of the silver metal were set to lose nearly 4%, their fifth straight week in the red.

The non-yielding bullions have turned sharply lower these days as the growing expectations for more rate hikes by the Federal Reserve helped the yield on the 10-year U.S. Treasury to climb to a top of 3.92% on Friday, its highest since December 30, 2022.

The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like Gold and Silver, which drives up their opportunity cost.

Sticky inflation data weigh on bullion prices:

Bullions extended recent losses on Thursday after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% vs 0.4% market anticipated, while the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Thursday’s reports followed sticky inflation data from earlier this week that showed robust growth in U.S. retail sales, strong consumer confidence, and a solid labor market in January, stoking fears that the Federal Reserve would have to raise rates higher than previously expected.

Hawkish Fed hits hard gold and silver:

The selloff in gold and silver intensified on Friday morning following comments from St. Louis Federal Reserve President James Bullard that he backed a 50-basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March FOMC meeting.

Separately, Cleveland Fed President Loretta Mester also said that interest rates will likely rise above 5% as the Fed moves against inflation and that the central bank should have hiked rates by more than 25 bps at its February meeting.

U.S. stocks advance on robust retail sales and inflation data

Posted on by Vrasidas Neofytou

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Furthermore, the retail sales data came just a day after U.S. figures showed inflation slowing but still sticky. The January’s U.S. CPI-consumer price index rose 0.5% in January, higher than the 0.4% forecast by economists, which translated to an annual gain of 6.4%, compared with the expected 6.2%.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Furthermore, the retail sales data came just a day after U.S. figures showed inflation slowing but still sticky. The January’s U.S. CPI-consumer price index rose 0.5% in January, higher than the 0.4% forecast by economists, which translated to an annual gain of 6.4%, compared with the expected 6.2%.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

The U.S. retail sales in January 2023 jumped 3%, versus an expected 1.9% and beating a decline of 1.1% in December 2022, driven by purchases of motor vehicles and other goods, the U.S. Commerce Department said on Wednesday. Excluding autos, sales increased by 2.3% vs the expected 0.9% according to the report, which is not adjusted for inflation.

Furthermore, the retail sales data came just a day after U.S. figures showed inflation slowing but still sticky. The January’s U.S. CPI-consumer price index rose 0.5% in January, higher than the 0.4% forecast by economists, which translated to an annual gain of 6.4%, compared with the expected 6.2%.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

The U.S. retail sales in January 2023 jumped 3%, versus an expected 1.9% and beating a decline of 1.1% in December 2022, driven by purchases of motor vehicles and other goods, the U.S. Commerce Department said on Wednesday. Excluding autos, sales increased by 2.3% vs the expected 0.9% according to the report, which is not adjusted for inflation.

Furthermore, the retail sales data came just a day after U.S. figures showed inflation slowing but still sticky. The January’s U.S. CPI-consumer price index rose 0.5% in January, higher than the 0.4% forecast by economists, which translated to an annual gain of 6.4%, compared with the expected 6.2%.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

U.S. stock markets extended recent gains on Thursday morning driven by the better-than-expected retail sales and inflation data for January, which indicates strength in the U.S. economy and consumer spending.

The U.S. retail sales in January 2023 jumped 3%, versus an expected 1.9% and beating a decline of 1.1% in December 2022, driven by purchases of motor vehicles and other goods, the U.S. Commerce Department said on Wednesday. Excluding autos, sales increased by 2.3% vs the expected 0.9% according to the report, which is not adjusted for inflation.

Furthermore, the retail sales data came just a day after U.S. figures showed inflation slowing but still sticky. The January’s U.S. CPI-consumer price index rose 0.5% in January, higher than the 0.4% forecast by economists, which translated to an annual gain of 6.4%, compared with the expected 6.2%.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

U.S. stock markets extended recent gains on Thursday morning driven by the better-than-expected retail sales and inflation data for January, which indicates strength in the U.S. economy and consumer spending.

The U.S. retail sales in January 2023 jumped 3%, versus an expected 1.9% and beating a decline of 1.1% in December 2022, driven by purchases of motor vehicles and other goods, the U.S. Commerce Department said on Wednesday. Excluding autos, sales increased by 2.3% vs the expected 0.9% according to the report, which is not adjusted for inflation.

Furthermore, the retail sales data came just a day after U.S. figures showed inflation slowing but still sticky. The January’s U.S. CPI-consumer price index rose 0.5% in January, higher than the 0.4% forecast by economists, which translated to an annual gain of 6.4%, compared with the expected 6.2%.

Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

U.S CPI-inflation data for January 2023

In other words, the prices in the U.S. last month increased faster than economists had anticipated, mainly by higher food, energy, and housing (shelter) costs, cementing the case that the Federal Reserve still has further to go in tightening rates.

Looking at the bond market, the yields of U.S. Treasurys climbed after the hotter-than-expected retail sales and inflation report, which likely indicates more interest rate hikes by the Federal Reserve in the next months.

The 10-year Treasury’s yield hit a five-week high of 3,80% this week, while the 2-year rose as high as 4.70%, having risen nearly 0.70 percentage points in February alone.

The surging bond yields, the stronger labor market, the robust consumer spending, and the prospects from higher interest rates have also helped the U.S dollar to rise across the board, with the DXY-dollar index hitting a six-week high of 104,11 last night, while Euro broke the briefly below the $1.07 support level.

Equity investors cheered the prospect of sustained economic growth in the largest economy of the world, as some macroeconomic data such as the industrial production, retail sales, and jobs for January were generally better than expected.

The pickup in economic activity in the U.S. is dismissing the concerns about decades-high inflation and surging interest rates, and injecting optimism into the stock market, with tech-heavy Nasdaq Composite extending recent gains by another 1% to 12,070, followed by lower gains of 0,30% and 0,10% in S&P 500 and Dow Jones indices respectively.

Proud Sponsor of Petros Englezoudis – 2nd position holder in Cyprus Grand Prix – Trap–Skeet 2023

Posted on by Exclusive Capital Team

It is an immense pleasure for Exclusive Capital to be supporting such a hard-working and devoted young talent, and we wish him all the best.

Congratulations, Petro!

We have been following, supporting and sponsoring the outstanding athletic career of this skilful and talented Cypriot athlete as he continues to accomplish his goals and desired results.

Petros won 1st place in World’s Junior Skeet Shooting Ranking, becoming a Youth Champion in Skeet Shooting in 2019. Previously, at the World Championships, Petros achieved a high score in the race, qualified for the final and took 4th place. Participating in the Pan-European Championship, he managed to get a high result, qualified for the final and got the bronze medal for Cyprus.

It is an immense pleasure for Exclusive Capital to be supporting such a hard-working and devoted young talent, and we wish him all the best.

Congratulations, Petro!

Exclusive Capital is proud of Petros Englezoudis, who participated in the Cyprus Grand Prix – Trap–Skeet competition, scoring 120/125 and winning 2nd place.

We have been following, supporting and sponsoring the outstanding athletic career of this skilful and talented Cypriot athlete as he continues to accomplish his goals and desired results.

Petros won 1st place in World’s Junior Skeet Shooting Ranking, becoming a Youth Champion in Skeet Shooting in 2019. Previously, at the World Championships, Petros achieved a high score in the race, qualified for the final and took 4th place. Participating in the Pan-European Championship, he managed to get a high result, qualified for the final and got the bronze medal for Cyprus.

It is an immense pleasure for Exclusive Capital to be supporting such a hard-working and devoted young talent, and we wish him all the best.

Congratulations, Petro!

Exclusive Capital is proud of Petros Englezoudis, who participated in the Cyprus Grand Prix – Trap–Skeet competition, scoring 120/125 and winning 2nd place.

We have been following, supporting and sponsoring the outstanding athletic career of this skilful and talented Cypriot athlete as he continues to accomplish his goals and desired results.

Petros won 1st place in World’s Junior Skeet Shooting Ranking, becoming a Youth Champion in Skeet Shooting in 2019. Previously, at the World Championships, Petros achieved a high score in the race, qualified for the final and took 4th place. Participating in the Pan-European Championship, he managed to get a high result, qualified for the final and got the bronze medal for Cyprus.

It is an immense pleasure for Exclusive Capital to be supporting such a hard-working and devoted young talent, and we wish him all the best.

Congratulations, Petro!

Exclusive Capital is proud of Petros Englezoudis, who participated in the Cyprus Grand Prix – Trap–Skeet competition, scoring 120/125 and winning 2nd place.

We have been following, supporting and sponsoring the outstanding athletic career of this skilful and talented Cypriot athlete as he continues to accomplish his goals and desired results.

Petros won 1st place in World’s Junior Skeet Shooting Ranking, becoming a Youth Champion in Skeet Shooting in 2019. Previously, at the World Championships, Petros achieved a high score in the race, qualified for the final and took 4th place. Participating in the Pan-European Championship, he managed to get a high result, qualified for the final and got the bronze medal for Cyprus.

It is an immense pleasure for Exclusive Capital to be supporting such a hard-working and devoted young talent, and we wish him all the best.

Congratulations, Petro!

Brent crude rises to $86/b as traders weigh SPR sales and Russian output cut

Posted on by Vrasidas Neofytou

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Brent crude oil, 2-hour chart

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Brent crude oil, 2-hour chart

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Brent crude oil, 2-hour chart

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Both Brent and WTI crude oil prices trade to near monthly highs of $86/b and $80/b respectively, as energy traders weighed the impact of Friday’s 500,000 bpd Russian output cut decision together with the U.S. administration’s announcement to release further crude oil from its Strategic Petroleum Reserve (SPR).

Brent crude oil, 2-hour chart

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

Both Brent and WTI crude oil prices trade to near monthly highs of $86/b and $80/b respectively, as energy traders weighed the impact of Friday’s 500,000 bpd Russian output cut decision together with the U.S. administration’s announcement to release further crude oil from its Strategic Petroleum Reserve (SPR).

Brent crude oil, 2-hour chart

The U.S. Department of Energy (DOE) announced on Monday that it would sell a further 26 million barrels of oil from the SPR following a record sale of 180 million barrels in 2022 to balance the tight oil market and hit skyrocketing gasoline prices.

The SPR currently stands at 372M barrels – its lowest level since 1983. The latest release is due for bidding on February 28 and is set for delivery between April and June.

The additional SPR sale has temporarily paused last week’s crude oil rally, which saw the price of Brent bouncing off monthly lows of $79/b to as high as $87/b, or up 8% in a week, driven by Russian output cut, optimism over fuel demand recovery in China, and a falling dollar.

Russia, the world’s third-largest oil producer, said on Friday that it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western oil curbs on its energy exports that were imposed in response to the Ukraine war.

Since Russia has been over-exporting crude oil with deep discounts to finance its war against Ukraine, the 500,000 bpd output cut would bring the country back in line with its OPEC+ quota, after the oil alliance agreed to a 2 million bpd cut in October 2022.

Oil prices got further support last week following the fall of the U.S. dollar to a seven-month low against major currencies, making the dollar-denominated crude oil prices less expensive for buyers with other currencies.

U.S. dollar rises across the board ahead of key CPI inflation data

Posted on by Vrasidas Neofytou

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

On top of that, Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation, triggering a rebound on the dollar against other currencies.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

On top of that, Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation, triggering a rebound on the dollar against other currencies.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

More robust jobs data and solid economic readings saw markets last week have to recalibrate expectations for how high the Federal Reserve may need to raise rates this year to curb the record-high inflation.

On top of that, Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation, triggering a rebound on the dollar against other currencies.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

More robust jobs data and solid economic readings saw markets last week have to recalibrate expectations for how high the Federal Reserve may need to raise rates this year to curb the record-high inflation.

On top of that, Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation, triggering a rebound on the dollar against other currencies.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

The U.S. dollar has posted a significant rebound across the board since February 01, 2023, gaining support from the stronger-than-expected U.S. macroeconomic data, the hawkish messages by the policymakers ahead of the key U.S. CPI- consumer inflation data due on Tuesday that might give more clarity over the Fed’s rate hike intentions.

More robust jobs data and solid economic readings saw markets last week have to recalibrate expectations for how high the Federal Reserve may need to raise rates this year to curb the record-high inflation.

On top of that, Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation, triggering a rebound on the dollar against other currencies.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

The U.S. dollar has posted a significant rebound across the board since February 01, 2023, gaining support from the stronger-than-expected U.S. macroeconomic data, the hawkish messages by the policymakers ahead of the key U.S. CPI- consumer inflation data due on Tuesday that might give more clarity over the Fed’s rate hike intentions.

More robust jobs data and solid economic readings saw markets last week have to recalibrate expectations for how high the Federal Reserve may need to raise rates this year to curb the record-high inflation.

On top of that, Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation, triggering a rebound on the dollar against other currencies.

Following a four-month downturn momentum, the DXY-U.S. dollar index which tracks the greenback against six major peers retreated from the multi-year high of 115 hit in late September 2022 to yearly lows of nearly 100 level at the end of January 2023.

DXY-U.S. dollar index, 2-hour chart

However, after the FOMC policy meeting on February 01, 2023, the dollar enjoys a strong rebound toward the 104 level, driven by the hot U.S nonfarm payrolls reading for January, the sharp bounce in the services ISM last month.

Surging yields give support on the dollar as well, with the yield on the 10-year bond bouncing from the lower end of its range that goes back to the middle of last September (3.30%) to the upper end near a five-week high of 3.75% on expectations for more rate hikes by the Fed.

CPI-inflation data due on Tuesday:

Investors look ahead to the well-expected January U.S. CPI consumer inflation data due on Tuesday that might provide more cues on monetary policy and the price trajectory of the dollar.

While the reading is expected to show further easing in inflation in January 2023 to 6.2% vs 6.5% in December 2022, it is still expected to remain relatively high, which could invite more interest rate hikes by the Federal Reserve.

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