|US interest rate decision, OPEC report and weekly oil stocks data|
|By A/S Global Risk Management.
|Michael Poulson, Global Risk Management. Image credit: Global Risk Management|
|Updated on 13 Jun 2018 06:34 GMT
|Today, the US FOMC - which is a part of the US central bank (the Fed) - is meeting to announce future policy. The so-called federal funds rate is especially important as this is the rate at which banks charge each other for overnight loans. Since 2015, the Fed has increased this rate gradually and it is expected to be raised from 1.75% to 2% as of the meeting today. Though this is an important macroeconomic parameter, it is not expected to stir much up in the financial markets as it has been expected for a while and likely is priced in already.
U.S. President Donald Trump and North Korean leader Kim Jong-un met yesterday in a historical session with a destruction of the North Korean nuclear programmes on the agenda. Even though the session historically and politically speaking was huge, it didn't have much economic significance - at least not on the oil market.
Turning tofundamentals: OPEC released its monthly oil market report which mentioned that a high degree of uncertainty is still present in the oil markets despite accompanying data showing that the supply overhang is gone. OPEC+ producers will meet in Vienna 22-23 June to discuss the further nature of the oil cut deal that is currently in place.
Yesterday, the American Petroleum Institute released its oil inventory data which showed U.S. crude stocks increased by 0.83 mbbl, gasoline stocks increased by 2.3 mbbl and distillates stocks increased by 2.1 mbbl. Later today, the EIA will release the weekly inventory report.
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