The U.S crude oil inventories jumpers over the weekend of Feb 1, and walls street’s battle against higher interest rates might take a bit more
Crude oil inventories in the United States increased by 2,432 million barrels by the end of the first week of February, as predicted by previous experts. The numbers were represented by the EIA reports, which were released in this morning’s opening session.
According to the EIA, the current state of crude oil inventories in the United States is the highest in 20 months. Plus, crude oil stockpiles rose for the seventh straight week in the U.S.
Meanwhile, the West Texas Intermediate rose by 1,52% to $78,8 per barrel in the commodity market. The price of crude oil increased by 1.3% to $84,22 per barrel.
In other words, global governments are losing faith in the US economy and its currency, the US dollar. Experts believe that higher interest rates and hikes directly contribute to inflation and fuel the inflationary fire. The U.S. dollar index is weakening, and Wall Street remains weak, especially in recent months. The dollar index fell 0.9 percent today, setting a new low.
This morning, Wall Street failed and declined amid fears of future interest hikes due to tightening monetary policy.
For the first time since late November, Alphabet Inc. stocks have experienced the steepest stock decline. The company was set to announce its newly developed AI program, which was expected to outperform ChatGPT. The company conference was disappointing for the AI tech community. Its stock fell sharply by 7.5% from $107 to $99 per share.
Meta popped by 3%, and Tesla decreased by 1,87%.
The Nasdaq index declined by 1,19%, affected by Google’s fall and higher interest rate concerns. The S&P 500 fell by 0,67%, and the DOW jones fell by 0,23%.
The battle against inflation might take extra time, meaning that the tightening monetary policy won’t be eased any time soon. At its meeting on Tuesday, U.S. Federal Reserve Chairman Jerome Powell noted that the U.S. central banks will keep raising their interest rates. On Wednesday morning, the New York federal reserve president said the same things and noted that its bank might lift its interest rates slightly higher than market expectations. In a recent interview with the Wall Street Journal, John Williams stated that the federal reverse mortgage work will not be completed anytime soon and that there is still much work to be done.
Williams’ comments left investors with a mixed and gloomy future outlook. He says that the battle against inflation might extend for a few more years. From his point of view, increasing interest rates continuously for several years is the only way to make sure inflation isn’t going to peak anymore.
This restrictive and extreme policy has become a source of concern for U.S. marketers and foreign marketers alike.
In response to the latest news, US 10-year Treasury yields fell by 1.19% to 3,630, while US 10-year T-notes rose by 0.21% to 113,47.