Brent crude, the global benchmark, rose slightly, to $93.54, after falling more than 2% earlier. U.S. benchmark West Texas Intermediate crude, down 0.8% to $91.07 a barrel, after falling below $90 a barrel earlier.
Oil traders are also reacting to reports that talks to restore the nuclear deal with Iran are making progress, analysts said, a development that could bring in tens of millions of dollars. oil barrels for the market.
With inflation in the US at a four-decade high, soaring energy prices or any impact on already hardened global supply chains will only make matters worse. Investors have been worried that the Federal Reserve will raise interest rates too aggressively as it looks to hold down prices, and any spillovers from the Russia-Ukraine conflict could increase urgency for central bank.
This week, several Fed officials mentioned the need to act soon.
Fed Governor Lael Brainard said on Friday that she anticipates it would be “appropriate” to “begin a series of rate hikes” at the Fed’s next meeting in March.
Policymakers “will turn to balance sheet flows” – allowing some of the $9 trillion in bonds and other assets the central bank has amassed to mature without no need to reinvest , she said at a forum hosted by the University of Chicago Booth School of Business in New York . That could happen “probably in the upcoming meetings,” she said, adding that “those things will bring down inflation over time.”
And Charles Evans, president of the Federal Reserve Bank of Chicago, said in a speech on friday that “our current monetary policy setting is not consistent with the current sharp increase in inflation”.
The yield on the 10-year US Treasury note fell to about 1.93%, from 1.97%, another sign that investors are looking for relatively safe investments. Bond yields decrease as their prices rise.
Jeanna Smialek contribution report.
https://www.nytimes.com/2022/02/18/business/stocks-bonds-ukraine.html After the sell-off, the market watched Ukraine developments cautiously