- Oil advances losses ahead of Fed meeting amid concerns about an economic slowdown
- June ’23 WTI lost 32c this morning to trade around $75.34/Bbl
- Crude prices fell yesterday following weak Chinese manufacturing data for the first time since December and economic concerns from the recent banking crisis
- Markets are cautious of likely rate hikes by the Fed and ECB this week, with a 25 bp hike expected from the Fed
- Equities are down this morning while the U.S. dollar strengthened, making dollar-denominated commodities more expensive for holders of other currencies
- Russian oil exports surge despite the output cut threat (BBG)
- Russia's oil exports surpassed 4 MMBbl/d last week, showing no signs of threatened output cuts according to Bloomberg’s tanker tracking
- Putin's government may resume foreign currency purchases for reserves due to increased oil revenue stabilizing public finances
- However, AEGIS believes that the market might not yet account for the supply deficit caused by OPEC+'s output cuts, as their significant effects are anticipated after May