Brent oil prices fell during early Wednesday trading
OIL
Brent oil prices fell during early Wednesday trading. Expectations within the financial markets have been shifting to accommodate the resilience of the US economy and stubbornly sticky inflation, resulting in an outlook that now assumes the Federal Reserve will hike rates further than previously thought. This scenario, of a hawkish Fed causing a hard landing for the economy, dents the growth prospects of the US and to some extent those of the rest of the world. The latest FOMC minutes are due for publication later today, when fears of a hawkish tilt could be confirmed, exacerbating the downgrading of growth expectations – a scenario that could see oil prices suffer further as the markets price-in lower future demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
ACTIVTRADES:BRENTAPR23
Brent oil prices fell during early Wednesday trading. Expectations within the financial markets have been shifting to accommodate the resilience of the US economy and stubbornly sticky inflation, resulting in an outlook that now assumes the Federal Reserve will hike rates further than previously thought. This scenario, of a hawkish Fed causing a hard landing for the economy, dents the growth prospects of the US and to some extent those of the rest of the world. The latest FOMC minutes are due for publication later today, when fears of a hawkish tilt could be confirmed, exacerbating the downgrading of growth expectations – a scenario that could see oil prices suffer further as the markets price-in lower future demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
ACTIVTRADES:BRENTAPR23
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