- Oil falls from a two-week high amid Fed’s hawkish interest rate outlook
- August ’23 WTI lost $1.49 this morning to trade around $71/Bbl
- Equities and the dollar have weakened ahead of today's Jobless Claims report
- Powell maintained the Fed's hawkish stance in his congressional testimony yesterday (Reuters)
- He said that it was "a pretty good guess" to expect two more 25 basis point rate hikes before the year ends
- Yesterday, the Bank of England unexpectedly hiked interest rates by 50 basis points due to persistently high UK inflation of 8.7% in May
- EOG Foresees Crude Market Tightening with Reviving Chinese Manufacturing (BBG)
- EOG Resources sees a tightening crude market driven by a revival in Chinese manufacturing
- Despite China's weak industrial activity, EOG's COO Billy Helms expects a demand surge and a tighter market as manufacturing revives in the near term
- He added that the U.S. production growth is expected to remain subdued at 0.6 MMBbl/d, with future supply limited by OPEC+ cuts
- India's Russian Oil Imports Soar Fueled by Lower Prices (Reuters)
- India's imports of Russian oil reached a record high of 1.95 MMBbl/d in May
- The increased dependence on Russia led to reduced imports from Iraq and Saudi Arabia, with Russia now constituting about 40% of India's oil imports
- In April, the landed price for Russian crude was significantly lower at $68.21/Bbl, compared to $77.76/Bbl for Iraq and $86.90/Bbl for Saudi Arabia