Crude oil rises, the dollar grows stronger

Futures contracts for WTI oil more expensive today above the level of $ 93 a barrel. The price increase may be supported by both macroeconomic data and comments from Saudi Arabia and OPEC.

The Organization of the Petroleum Exporting Countries may decide to reduce oil production in the event of a global recession, representatives of several countries from the alliance told The Wall Street Journal on Tuesday.

OPEC and its partners, led by Russia, are closely coordinating the volume of oil production, especially since the initial effects of the coronavirus pandemic in the first half of 2020. The members of the alliance will meet again on September 5 to determine the rate of oil production, according to information from the BBN website.

Meanwhile, according to data published by API, last week's crude oil inventories in the United States fell by 5,6 million barrels, according to the report American Fuel Institute (API). The market consensus assumed a much lower decline, by 0,9m bbl. Official EIA government data will be released today. Provisions are expected to decrease by PLN 933 thousand. barrels.

Probably due to the combination of the above two factors, oil prices rose by almost 4% on Tuesday. However, counting from the June summit, crude oil lost about 25%, probably due to growing fears that the global economic slowdown could stifle consumption.

Fed doomed to aggressiveness?

The dollar index rebounded to around 108,7 on Wednesday and rose again towards the highest levels in 20 years. The appreciation of the USD may have been influenced by comments from the representatives of the US Federal Reserve.

Minneapolis Fed chairman Neel Kashkari said his biggest concern was underestimating the extent of price pressure and that the central bank would have to be more aggressive over the longer term if inflation continued. This may mean tightening of the monetary policy even when the specter of a stronger inhibition of the economy appears. Kashkari added that the central bank may ease interest rate hikes as it becomes clear that inflation is headed towards 2%.

More tips for action plans Federal Reserve they may come later this week when Jerome Powell, Fed chairman, will be speaking at the annual symposium in Jackson Hole.