Oil prices surge, markets narrow odds on Fed hike

Posted on:
Key Points

Brent oil futures jumped $5.16 to $85.05 a barrel on news output would be cut by around 1.16 million barrels per day, while U.S. crude climbed $4.88 to $80.55...

Oil prices surged on Monday after Saudi Arabia and other OPEC+ oil producers announced a surprise round of output cuts, a potentially ominous sign for global inflation just days after a slowdown in U.S. price data had boosted market optimism..

Goldman Sachs lifted its forecast for Brent to $95 a barrel by the end of the year and to $100 for 2024.Todays surprise cut is consistent with the new OPEC+ doctrine to act pre-emptively because they can without significant losses in market share, Goldman said..

The jolt to inflation expectations saw yields on U.S. two-year Treasuries rise 3 basis points to 4.104%, while Fed fund futures pared back expectations for rate cuts later in the year..

The market nudged up the probability of the Federal Reserve hiking rates by a quarter point in May to 61%, from 48% on Friday, and had 40 basis points of cuts priced in by year end..

You might be interested in

Easing oil, energy prices offer salve to consumers hurt by inflation

11, Apr, 23

Prior to the OPEC+ output curbs, benchmark oil prices recorded their fifth straight month of declines and also the steepest first-quarter drop since 2020, as a banking crisis and tighter monetary policy weighed on futures.

Oil heads for 7th weekly loss as supply surplus, weak China demand weigh on market

08, Dec, 23

By Stephanie Kelly and Muyu Xu (Reuters) -Oil benchmarks were headed for a seventh straight weekly decline on worries over a global supply surplus and weak Chinese demand, although prices recovered

Oil prices steady in pre-Thanksgiving trade ahead of OPEC+ cuts

22, Nov, 23

By Laura Sanicola and Colleen Howe (Reuters) -Oil prices stayed within a narrow range on Wednesday in quiet pre-U.S. Thanksgiving holiday trading, as the market awaited news on output cuts from the

Oil prices mixed as markets weigh OPEC+ cuts, China demand concerns

06, Dec, 23

BEIJING (Reuters) -Oil prices were mixed in Asian trade on Wednesday, after posting four sessions' worth of losses, as markets weighed the effectiveness of OPEC+ cuts on supplies and worries of a

Oil prices continue to gain amid worries about supply disruptions; brent crude at $89.76/bbl

03, Apr, 24

Brent crude futures climbed by 84 cents, representing a 0.9% increase, reaching $89.76 per barrel by 11:38 a.m. ET (1538 GMT). Similarly, U.S. West Texas Intermediate futures experienced a gain of 76 cents, or 0.9%, reaching $85.91 per barrel.

Oil down more than $1 a barrel as Angola decides to exit OPEC

21, Dec, 23

By Robert Harvey LONDON (Reuters) -Oil prices fell by more than $1 a barrel on Thursday after Angola announced it is leaving the Organization of the Petroleum Exporting Countries (OPEC). Brent crude

Meet America’s Newest Oil Trader Extraordinaire: Joe Biden

31, Dec, 23

US President Biden’s 2022 release of oil from America’s petroleum reserves turned the White House into an active player in the volatile crude market

Oil drops to 6-month low on weak economic outlook, high U.S. supply

08, Dec, 23

By Stephanie Kelly NEW YORK (Reuters) -Oil prices fell on Thursday to six-month lows, as investors worried about sluggish energy demand in the United States and China while output from the U.S.

Oil rises after OPEC+ extends output cuts

04, Mar, 24

(Reuters) - Oil prices rose on Monday after OPEC+ members agreed to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, largely in line with market expectations.