The explosion in oil prices threatens to isolate world leaders, and Europe's screams are heard in the Arabian Gulf and Saudi Arabia

https://www.youtube.com/watch?v=wJjl-yEOQHs
Updates on the oil issue presented in this episode of Samri Channel.
Oil prices rose, after cautious but positive statements from a US Federal Reserve official about the future of interest rate cuts and expectations of a decline in US crude inventories. Brent crude futures rose 77 cents to $85.02 per barrel by 14:45 GMT, while US West Texas Intermediate crude futures rose $1.02 to $81.35 per barrel, according to Sky News Arabia. The two benchmarks gained about 2 percent yesterday, Monday, to end the session at their highest levels since April.

Brent has recovered from a settlement price of $77.52 a barrel in early June but is still far from the peak of $90 it reached in mid-April. Prices continued their gains today after the head of the US Central Bank branch in New York, John Williams, said that interest rates will gradually decrease over time. He refused to specify the date when the bank would begin easing its monetary policy. When asked whether the Central Bank expects an interest rate cut in September based on current market conditions, he said: “I think things are moving in the right direction.”

He added that the reduction will depend on future data. According to analysts polled by Reuters, US crude oil inventories are expected to decline by about 2.3 million barrels in the week ending June 16. Some analysts remained optimistic about the impact of the OPEC+ extension of supply cuts on oil prices in the near term. Data from the Bureau of Statistics showed yesterday that the production of China's oil refineries in May fell 1.8 percent from its levels a year ago, as refinery companies carried out planned repairs and maintenance and refining profits were affected by high crude costs.

In a similar context, a number of US Federal Reserve officials made cautious statements regarding lowering interest rates. Amidst the uncertainty, they expected interest rates to be cut at least once this year, without mentioning dates. They expressed their lack of confidence in the acceleration of the decline in inflation towards the target set by the Central Bank. On this issue, US Federal Reserve Governor Adriana Kugler said on Tuesday that she is confident that inflation will continue to move in the right direction and allow interest rates to be lowered later this year.

“Although I remain cautiously optimistic about declining inflation, it is still very high and is only moving downward slowly,” she continued. “I think politics has more work to do,” Kugler said in remarks delivered at the Peterson Institute for International Economics in Washington. While she considered that economic conditions were moving in the right direction, Kohler noted: “If the economy develops as I expect, it will likely become appropriate to start easing policy later this year.”

In the same context, Boston Fed President Susan Collins said that the recent inflation data was encouraging, although it is not enough to move the compass yet on monetary policy. She stressed that it is too early to determine whether inflation is on the way back to the 2% target permanently. “Uncertainty remains high, and volatility of monthly data remains high, including inflation-related data,” Collins said in remarks she made in Lawrence, Massachusetts.

She added, “We should not overreact to a month or two of promising news, just as it was not appropriate to receive so many signals from disappointing data at the beginning of this year.” Earlier in the day, Richmond Fed President Thomas Barkin said the data was “pointing absolutely in the right direction,” while warning that inflation was “not yet on target.”

#Saudi Arabia
#Gulf
#Egypt