Oil prices rose for the second day in a row, Tuesday (26/7). Amid growing concerns about tightening European supplies after Russia, a major energy supplier is cutting gas supplies via a main pipeline. The European Union has repeatedly accused Russia of using energy blackmail. The Kremlin said the shortage had been caused by maintenance issues and Western sanctions. EU energy ministers on Tuesday approved a proposal for all EU countries to cut voluntary gas use by 15% from August to March.
The Organization of the Petroleum Exporting Countries and allied producers (OPEC+) are expected to confirm as a mere formality their decision to expand oil production by 650,000 barrels per day in July and August. The OPEC+ group of producers including Russia, began two days of meetings on Wednesday, though sources said there was little prospect of agreement to pump more oil . The net drop in crude oil inventories was flattered by SPR (Strategic Petroleum Reserve) releases, while the gasoline stock jump is because U.S. refineries are running at over 95% capacity.
Should we worry about the FOMC meetings later? How will it affect oil price if the fed decided hike rates to 75 bps or 100 bps? Thank you Mas
DNP-FX
⋅
@erwintampan, Hi bang Erwin! thanks for your comment. it's great that you know so much to consider a high impact event. interest rate is not too influential for oil fluctuation. Especially for oil, if tonight the fed puts on a less optimistic tone about "recession fears" then it's likely that oil prices will fall, technically support will breakout. but if the fed is very optimistic, then manufacturing will grow so the demand for oil increases, technically resistance will breakout.
erwintampan
⋅
@DNP-FX Thank you for the insights mas! 🙏🏻 really appreciate your opinions🙏🏻 keep it up