- Oil is lower by more than $1 after Fed comments imply rates may stay high
- The US dollar is trading higher following the Federal Reserve commentary
- Prompt crude volatility continues to move lower, falling to the lowest level since 2019
- Some physical markets have shown signs of weakening, with WTI Midland in Europe falling to 69c below Dated Brent, the lowest level since last May
- Federal Reserve comments lead to demand fears (Reuters)
- Oil prices fell following comments from the Federal Reserve, with Governor Waller saying they need several more months of good inflation data to begin interest rate cuts
- Interest rates staying higher for longer could impact oil markets by weakening demand through higher borrowing costs
- India requests refiners join Russia oil deal (BBG)
- India has requested its state-run refiners jointly negotiate a long-term supply deal with Russia
- The government wants refiners to lock in at least a third of their supply from Russia at a fixed discount to protect the country’s economy from price volatility
- India has been a major buyer of discounted Russian crude, but tighter enforcement of US sanctions has hindered the trade and led to refiners buying more expensive crude grades
- According to sources familiar with the matter, state refiners are seeking oil at a discount of more than $5/Bbl to Brent, while Russia is offering a $3/Bbl discount
