NEW YORK, KOMPAS.com – World crude oil prices increased on Thursday (9/22/2022) local time. The movement of world crude oil prices was overshadowed by the sentiment of concern over Russian oil supplies and rising interest rates.
Quotes CNBC, Brent crude futures rose 0.8 percent, to 90.58 dollars per barrel. Meanwhile, the price of US West Texas Intermediate (WTI) crude oil rose 75 cents, or 0.8 percent, to 83.69 US dollars per barrel.
Russia’s policy, which is now starting to push for the largest military conscription after the world war, has raised fears of a further escalation of the war in Ukraine, and could potentially hamper supplies.
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“Putin’s war rhetoric is a sentiment that overshadows the world’s oil markets,” said John Kilduff, partner at Again Capital LLC in New York.
This is also exacerbated by lower oil supplies from the Organization of the Petroleum Exporting Countries (OPEC).
“OPEC crude exports have been fairly stable since they picked up quite a bit earlier this month,” said Giovanni Staunovo, commodities analyst at UBS.
The European Union is considering curbs on Russian oil prices, as well as high-tech exports to Russia, as well as sanctions in the event of an escalation of Moscow’s war on Ukraine. On the other hand, China’s crude oil demand is also still under pressure due to tight restrictions due to Covid-19.
After the Fed raised interest rates by 75 basis points, now it is the turn of the Bank of England to raise its main interest rate by 50 basis points to 2.25 percent. The BoE said it would continue to raise interest rates if needed to curb inflation.
Several other countries also raised their benchmark interest rates, including Bank Indonesia (BI) by 50 basis points, followed by the Swiss National Bank and Norges Bank.
On the other hand, Turkey’s central bank unexpectedly cut its policy rate by 100 basis points to 12 percent. This is in contrast to most central banks around the world increasing their interest rates.
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