09-26-2023, 06:56 PM
HEATING FUEL PRICES
![[Image: 58d06d66abe8353d1a8a51e40c9e5df2.png]](https://freshforex.com/netcat_files/Image/58d06d66abe8353d1a8a51e40c9e5df2.png)
Dear clients,
Oil prices rose on Monday as investors focused on the prospects of tightening supply after Moscow imposed a temporary ban on fuel exports, but at the same time are wary of further rate hikes that could dampen demand.
Brent crude futures rose 69 cents, or 0.7%, to $93.96 a barrel by 06:46 GMT after falling 3 cents on Friday. West Texas Intermediate continued to rise for a second session and traded at $90.57 a barrel, up 54 cents, or 0.6%.
Both contracts went on a tear last week, breaking a three-week winning streak, after the Federal Reserve's hawkish stance caused concern in the global financial sector and boosted demand for oil.
Prices had risen more than 10% in the previous three weeks amid forecasts of a large oil supply deficit in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts until the end of the year.
Moscow last week temporarily banned petrol and diesel exports to most countries to stabilise the domestic market, adding to fears of low supply of the commodity, especially heating oil, as the Northern Hemisphere enters winter.
In the US, despite higher prices, the number of active oil rigs fell by eight last week to 507, the lowest since February 2022, Baker Hughes showed in its weekly report on Friday.
Expectations of better economic data this week from China, the world's biggest oil importer, also helped boost sentiment. However, analysts said oil prices face technical resistance at the November 2022 highs reached last week.
According to analysts at Goldman Sachs, China's manufacturing sector is expected to return to growth in September, with the manufacturing business activity index expected to exceed the 50 mark for the first time since March.
On the positive side, Chinese oil demand rose 0.3 million bpd to 16.3 million last week, partly due to a gradual recovery in demand for jet fuel for international flights, they added.
"THERE'S NO HURRY": INDEX GAINS AMID MARKET SLOWDOWN
![[Image: b636053083606826edd1e8285b9a362c.png]](https://freshforex.com/netcat_files/Image/b636053083606826edd1e8285b9a362c.png)
Dear clients,
Wall Street's major indices rose on Monday, including Amazon.com and energy stocks, as Treasury yields continued to rise and investors awaited economic data and speeches from Fed policymakers later in the week to get clarity on the future path of interest rates.
Investors are struggling with benchmark Treasury yields rising to 16-year highs after the Fed gave a hawkish outlook for long-term rates. The S&P 500 index rebounded Monday after last week's weekly decline was its biggest since March.
The Dow Jones Industrial Average (.DJI) index rose 43.04 points, or 0.13%, to 34,006.88; the S&P 500 index (.SPX) added 17.38 points, or 0.40%, to 4,337.44; and the Nasdaq Composite index (.IXIC) added 59.51 points, or 0.45%, to 13,271.32.
With the end of the third quarter approaching, investors have noted that until companies report quarterly results in the coming weeks, market movement may be relatively muted.
The S&P 500 index is down about 5.5% since the end of July, but is up about 13% for 2023.
According to analysts, there is no need to actively buy pullbacks during a period when rates remain higher-for-longer, and that is what the market will have to deal with in the coming months.
Investors will be watching data throughout the week, including durable goods and personal consumption expenditure price index for August, gross domestic product for the second quarter, and speeches from Fed policymakers, including Chairman Jerome Powell.
Chicago Fed Chairman Austan Goolsbee told CNBC on Monday that keeping inflation above the Fed's 2% target remains a greater risk than the central bank's tight policy slowing the economy more than necessary.
Dear clients,
Oil prices rose on Monday as investors focused on the prospects of tightening supply after Moscow imposed a temporary ban on fuel exports, but at the same time are wary of further rate hikes that could dampen demand.
Brent crude futures rose 69 cents, or 0.7%, to $93.96 a barrel by 06:46 GMT after falling 3 cents on Friday. West Texas Intermediate continued to rise for a second session and traded at $90.57 a barrel, up 54 cents, or 0.6%.
Both contracts went on a tear last week, breaking a three-week winning streak, after the Federal Reserve's hawkish stance caused concern in the global financial sector and boosted demand for oil.
Prices had risen more than 10% in the previous three weeks amid forecasts of a large oil supply deficit in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts until the end of the year.
Moscow last week temporarily banned petrol and diesel exports to most countries to stabilise the domestic market, adding to fears of low supply of the commodity, especially heating oil, as the Northern Hemisphere enters winter.
In the US, despite higher prices, the number of active oil rigs fell by eight last week to 507, the lowest since February 2022, Baker Hughes showed in its weekly report on Friday.
Expectations of better economic data this week from China, the world's biggest oil importer, also helped boost sentiment. However, analysts said oil prices face technical resistance at the November 2022 highs reached last week.
According to analysts at Goldman Sachs, China's manufacturing sector is expected to return to growth in September, with the manufacturing business activity index expected to exceed the 50 mark for the first time since March.
On the positive side, Chinese oil demand rose 0.3 million bpd to 16.3 million last week, partly due to a gradual recovery in demand for jet fuel for international flights, they added.
"THERE'S NO HURRY": INDEX GAINS AMID MARKET SLOWDOWN
Dear clients,
Wall Street's major indices rose on Monday, including Amazon.com and energy stocks, as Treasury yields continued to rise and investors awaited economic data and speeches from Fed policymakers later in the week to get clarity on the future path of interest rates.
Investors are struggling with benchmark Treasury yields rising to 16-year highs after the Fed gave a hawkish outlook for long-term rates. The S&P 500 index rebounded Monday after last week's weekly decline was its biggest since March.
The Dow Jones Industrial Average (.DJI) index rose 43.04 points, or 0.13%, to 34,006.88; the S&P 500 index (.SPX) added 17.38 points, or 0.40%, to 4,337.44; and the Nasdaq Composite index (.IXIC) added 59.51 points, or 0.45%, to 13,271.32.
With the end of the third quarter approaching, investors have noted that until companies report quarterly results in the coming weeks, market movement may be relatively muted.
The S&P 500 index is down about 5.5% since the end of July, but is up about 13% for 2023.
According to analysts, there is no need to actively buy pullbacks during a period when rates remain higher-for-longer, and that is what the market will have to deal with in the coming months.
Investors will be watching data throughout the week, including durable goods and personal consumption expenditure price index for August, gross domestic product for the second quarter, and speeches from Fed policymakers, including Chairman Jerome Powell.
Chicago Fed Chairman Austan Goolsbee told CNBC on Monday that keeping inflation above the Fed's 2% target remains a greater risk than the central bank's tight policy slowing the economy more than necessary.