SINGAPORE, Sept 20 (Reuters) – Oil prices steadied on Tuesday after rising in the previous sessionon concerns that further U.S. interest rate hikes this week to tame inflation will curb economic growth and fuel demand in the world’s biggest oil consumer.
Brent crude futures for November settlement rose 3 cents to $92.03 a barrel by 0449 GMT.
U.S. West Texas Intermediate crude for October delivery was at $85.76 a barrel, up3 cents. The October contract will expire on Tuesday and the more active November contract was at $85.29, down 7 cents, or 0.1%.
Full coverage: REUTERS
U.S. Refiners Eye Canadian Oil Once Strategic Reserve Turns Off Taps
NEW YORK, Sept 20 (Reuters) – U.S. refiners are expected to buy more Canadian oil after the Biden administration ends releases from the Strategic Petroleum Reserve (SPR) this fall, traders said, adding this should boost the price of Canadian barrels at a time of tight global supply.
The coming end of SPR releases could shift market dynamics again in a year of high volatility following Russia’s invasion of Ukraine in February. In March the White House announced it would release 180 million barrels from the U.S. strategic reserve to help quell high prices.
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Japan’s Inflation Hits Near 8-year High, Stays Above BOJ’s Target
TOKYO, Sept 20 (Reuters) – Japan’s core consumer inflation quickened to 2.8% in August, hitting its fastest annual pace in nearly eight years and exceeding the central bank’s 2% target for a fifth straight month as price pressure from raw materials and yen weakness broadened.
The strength of August inflation reinforced growing suspicions among economists that price pressure will last longer than the Bank of Japan (BOJ) has been expecting, though many still expect no immediate change to its ultra-easy policy.
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Coal Rush! Energy Crisis Fires Global Hunt For Polluting Fuel
DAR ES SALAAM, Sept 20 (Reuters) – The sleepy Tanzanian port of Mtwara mainly dealt in cashew nuts until late last year. Now it bustles with vessels loading up with coal, as Russia’s invasion of Ukraine drives a worldwide race for the polluting fuel.
Tanzania traditionally exports thermal coal only to neighbouring countries in east Africa; sending it further afield was out of the question, as it required trucking the material more than 600 km from mines in its southwest to Mtwara, the nearest Indian Ocean port.
Full coverage: REUTERS
Morning Bid: Fore!
A look at the day ahead in European and global markets from Tom Westbrook
Sweden’s Riksbank is expected to tee off another round of outsized rate hikes today, with its largest rate rise in three decades.
Later, the U.S. Federal Reserve begins a policy meeting likely to set the tone for markets in the months to come, after an inflation surprise prompted markets to rethink the outlook.
Little more than a week ago markets were aiming at a peak around 4% for the benchmark U.S. Fed funds rate. Now the two-year yield is pushing 4% and markets see a peak around 4.5%.
Full coverage: REUTERS
