Oil prices are about to hit $120 a barrel, and they're likely going to stay high for two years. That...
Oil prices are about to hit $120 a barrel, and they're likely going to stay high for two years. That was one of the more jarring predictions Livia Gallarati made from London during a call yesterday.
Once new sanctions ban seaborne Russian crude imports to Europe, she explained, EU nations will have to fully cut themselves off from a neighboring, long-standing source of oil, and instead rely on more distant suppliers like the US or Middle East.
Russian crude production could see as much as 2 million barrels a day go offline by early next year when an additional ban on refined fuels kicks in, according to Energy Aspects, which would deliver a huge blow to global supplies and push prices higher.
"Brent is going to be structurally higher and it will feed into pump prices for the consumers," Gallarati told me. "There's no doubt about that."
U.S. stocks start Tuesday at 2-month highs after latest sign of easing inflation
U.S. stocks opened higher Tuesday after a report on wholesale price inflation pointed to signs of pressures...
U.S. stocks opened higher Tuesday after a report on wholesale price inflation pointed to signs of pressures easing. The Dow Jones Industrial Average DJIA, 0.93% gained 0.9% soon after the opening bell, while the S&P 500 SPX, +1.43% rose 1.6% and the Nasdaq Composite COMP, 2.05% climbed 2.5%, according to FactSet data, at last check. The producer-price index, which measures wholesale prices in the U.S., rose just 0.2% in October. That was softer than anticipated, with economists polled by The Wall Street Journal having forecast a 0.4% gain.
U.S. stock futures, bonds rally as wholesale price growth slows
U.S. stock futures rallied Tuesday morning after the producer...
U.S. stock futures rallied Tuesday morning after the producer price index for October came in lower than expected.The PPI index slowed to 8% from 8.4% in the 12 months through October, while core price growth slowed to 5.4% from 5.6%. Futures for the S&P 500 rose 78 points, or 2%, to 4,045, while futures for the Nasdaq 100 rose 366 points, or 3.1% to 12,102 after stock futures traded modestly higher before the data. Futures for the Dow Jones Industrial Average rose 405 points, or 1.2% to 33,967. Treasurys also rallied, with Treasury yields falling 9.4 basis points to 3.778%. Treasury yields move inversely to prices. The PPI data, which gauge prices paid by wholesale producers of goods, appeared to mirror a slowdown in consumer-price inflation exhibited by the October CPI released on Thursday. The October CPI report helped to cement expectations that the Federal Reserve will opt for a smaller interest-rate hike in December after four consecutive 75 basis point hikes.
Dow ends down over 200 points as stocks hit pause after last week's rally
U.S. stocks closed lower Monday amid rising Treasury yields,...
U.S. stocks closed lower Monday amid rising Treasury yields, as investors assessed the recent equities rally that had been sparked by optimism that inflation may be easing.The Dow Jones Industrial Average e DJIA, -0.63% finished down 0.6%, while the S&P 500 SPX, -0.89% slid 0.9% and the technology-heavy Nasdaq Composite COMP, -1.12% fell 1.1%, according to preliminary FactSet data. Investors keep looking for clues on how aggressively the Federal Reserve may need to be lifting interest rates to battle high inflation, as well as where its terminal rate could wind up. Fed Vice Chair Lael Brainard said Monday in an interview with Bloomberg that she thinks "it will probably be appropriate soon to choose a slower pace of increases." The yield on the 10-year Treasury note rose 3.7 basis points Monday to 3.865%, according to Dow Jones Market Data.
Oil futures settle lower, with U.S. prices down more than 3%
Oil futures ...
Oil futures declined on Monday, with U.S. prices losing more than 3% to erase Friday’s gain and then some. Losses followed a modest reduction in the Organization of the Petroleum Exporting Countries’ 2022 global demand forecast, as uncertainty continues to surround China’s COVID-19 policy and its outlook for energy demand. Still, with China looking to ease COVID restrictions and the potential price cap possibly Russia taking oil barrels off markets, “we feel risk is to the upside in energy markets,” said Tariq Zahir, managing member at Tyche Capital Advisors. U.S. benchmark West Texas Intermediate crude for December delivery CLZ22, fell $3.09, or 3.5%, to settle at $85.87 a barrel on the New York Mercantile Exchange after posting a gain of 2.9% on Friday.
