Oil stabilizes as euro and US stocks slide ahead of Fed meeting

while the euro suffered losses after its biggest decline in two weeks,
and the dollar stabilized before an expected hike in US interest rates later in the day,
as US stocks declined after Walmart stocks.

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Oil stabilizes as demand concerns offset falling US crude inventories

Euro declines as Fed’s rate hike approaches and gas risks weigh heavily on it

US stock markets fall after Walmart stocks fall

Oil stabilizes as demand concerns offset falling US crude inventories

Oil prices stabilized on Wednesday morning as concerns about weak demand offset industry
data showing a larger-than-expected decline in US crude inventories.

By 0250 GMT, Brent crude futures stood at $104.35 per barrel, down 5 cents, or 0.05 percent.

US West Texas Intermediate (WTI) crude rose by 9 cents,
0.1 percent to $95.07 per barrel, and WTI rose by nearly $1 earlier in the session.

In the analysts’ view, the sharp decline in inventories should support oil prices,
but the recovery has been limited by concerns about the likelihood of weak demand,
and the White House has said it will release more strategic reserves.

In addition, the prospect of the US Federal Reserve announcing a sharp rate hike later on Wednesday
weighs heavily on sentiment and limits the rise in oil prices.

After Tuesday’s settlement,
the American Petroleum Institute Industrial Group said US crude inventories fell by 4 million barrels last week.

Gasoline inventories fell by 1.1 million barrels,
compared with an increase of 3.5 million barrels.

The US government’s Energy Information Administration releases its weekly oil report later on Wednesday.

The Biden administration said on Tuesday it would sell an additional 20 million barrels of oil
from the country’s strategic petroleum reserves as part of a previously announced plan to take advantage of the facility,
calming oil prices boosted by Russia’s invasion of Ukraine
and rebounding demand in the aftermath of the war,
as well as the COVID-19 pandemic.

The administration said in late March that it would release 1 million barrels
of oil per day for six months from the Strategic Petroleum Reserve.

The United States had already sold 125 million barrels of the reserve
with nearly 70 million barrels delivered to buyers.

In the meantime, the US Federal Reserve is expected to raise interest rates by 75 basis points
later on Wednesday, underscoring concern about the outlook for US demand
and the potential for a stronger dollar,
making dollar-denominated commodities more expensive for buyers holding other currencies.

artıcal name Oil stabilizes as euro and US stocks

Euro declines as Fed’s rate hike approaches and gas risks weigh heavily on it

The euro suffered losses on Wednesday morning after its biggest decline in two weeks,
as a cut in Russian gas supply sent energy prices soaring,
while the dollar stabilized ahead of an expected hike in US interest rates later in the day.

The euro fell by about 1 percent to $1.0108 overnight,
the biggest decline since July 11 and stabilized in early Asian trading at $1.0139.

Growth in Europe remains vulnerable to Russian gas supplies,
which have become a major threat since the start of Ukraine’s war.

Flows along the Nord Stream tube from Russia to Germany fell on Tuesday and will fall further on Wednesday.

Movements were restricted elsewhere before the Fed’s policy announcement at 1800 GMT,
and the yen stabilized at 136.98 per dollar.

Australian and New Zealand dollars rose slightly in early trading,
but remained below Tuesday’s highs-sterling was close to $1.2048.

Markets priced the Fed up 75 basis points later on Wednesday,
with a 13 percent chance of a massive 100 basis point increase.

The focus will also be on the 1830 GMT press conference to get any hint
that policymakers’ intention to increase rate hikes is dwindling as growth slows.

The US dollar is expected to remain supported by long-term safe-haven flows.

Overnight data showed US consumer confidence fell to nearly a year-and-a-half
and new home sales fell, while Walmart (NYSE: WMT)
stocks fell after the retailer issued a profit warning.

artıcal name Oil stabilizes as euro and US stocks

US stock markets fall after Walmart stocks fall

US stock indices ended trading in the red on Tuesday due to a sharp deterioration
in retail leader Walmart’s profit forecast.

Walmart stocks fell by 7.6 percent,
and the company expects adjusted earnings per stock to fall by 8-9 percent
during the second fiscal quarter and 11-13 percent during the current fiscal year.

The Federal Reserve meeting that will end on Wednesday marks
the most important event for global markets this week,
with analysts’ consensus projections suggesting that after the meeting,
the central bank leadership will decide to raise the prime interest rate by 75 basis points,
although there is a possibility of a 100 basis point rate hike at once.

GE’s market value rose by 4.6 percent after the company reported
much better-than-expected adjusted profit
and revenue for the quarter.

Shares of US automaker GM fell by 3.4 percent, amid news
that the company had cut its net income by 40 percent from April to June,
with adjusted figures not meeting market expectations.

The Dow Jones Industrial Index fell by 0.71 percent to 31761.54
and the Nasdaq Composite Index fell by 1.87 percent to 11562.57.

Among the index’s decline leaders, in addition to Walmart,
Nike fell by about 3.8 percent and the S&P 500 fell by 1.15 percent to 3921.05 points.

artıcal name Oil stabilizes as euro and US stocks

Oil stabilizes as euro and US stocks

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