{"id":549248,"date":"2022-09-08T04:00:40","date_gmt":"2022-09-08T04:00:40","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/08\/oil-prices-hit-lowest-levels-since-january-markets-increasingly-expect-another-75-bps-fed-rate-hike-this-month\/"},"modified":"2022-09-08T04:00:40","modified_gmt":"2022-09-08T04:00:40","slug":"oil-prices-hit-lowest-levels-since-january-markets-increasingly-expect-another-75-bps-fed-rate-hike-this-month","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/08\/oil-prices-hit-lowest-levels-since-january-markets-increasingly-expect-another-75-bps-fed-rate-hike-this-month\/","title":{"rendered":"Oil prices hit lowest levels since January + Markets increasingly expect another 75-bps Fed rate hike this month"},"content":{"rendered":"

<\/a> Investors are increasingly pricing in another huge rate-hike in the US this month:<\/strong> The futures markets is currently giving a 75% probability to the Federal Reserve raising interest rates by 75 bps for the third consecutive meeting on the back of Chairman Jerome Powell\u2019s hawkish speech<\/a> last month, according to the Wall Street Journal\u2019s<\/a> Nick Timiraos. Federal Reserve officials haven\u2019t tried to dial back expectations for a large increase, and have continued pushing the idea that the central bank will act to curb inflation no matter what. The latest to do that was Fed Vice-Chair Lael Brainard, who said yesterday that \u201cwe are in this for as long as it takes to get inflation down,\u201d according to the Financial Times<\/a>.<\/p>\n

Oil prices plunged to their lowest level since January yesterday<\/strong> on fears of a global recession. Brent crude suffered its worst day since June, falling 5.4% to USD 87.82 a barrel. US crude, meanwhile, fell 5.6% to USD 82.<\/p>\n

Recession fears outweigh supply concerns:<\/strong> Falling prices indicate that investors\u2019 attention is trained on the possibility of recessions in major economies \u2014 caused by rising interest rates and an historic energy shock in Europe \u2014 rather than on the potential for supply to tighten in the coming months. Key OPEC producers have signaled in recent weeks that they could begin to cut supply in response to falling prices and made an albeit small step in that direction<\/a> earlier this week. Russian President Vladimir Putin has also threatened to curb supply if G7 nations try to impose a cap on Russian crude.<\/p>\n

ALSO WORTH NOTING-<\/strong><\/p>\n