Escalating fears of low demand and economic slowdown continued to hang over the market with the U.S. benchmark being down by more than 7% this week. Broader markets recovered the day after Federal Reserve officials calmed traders expecting even more aggressive rate hikes due to the monthly inflation report. However, the global oil supply remains strained, as seen in time spreads showing a wide premium for immediately available barrels. Charlie Bilello stated if the decline in Crude Oil holds, the market could see gas prices back below $4.00 in a few weeks: He added on July 15:
Indicator of lower inflation
Meanwhile, JPMorgan’s Gabriela Santos joined ‘Squawk Box’ on July 15, to discuss market futures, oil prices, and inflation. Further, Santos indicated that the fuel prices drop at the gas stations is possibly a sign of lowering inflation. The crude oil price decline has led shares of numerous energy companies lower. On the other hand, according to energy analyst, Amrita Sen, the recent dip in oil prices represents only a temporary decline. Sen argues that the extremely limited supply will drive prices higher again. Sen remains bullish, stating: Due to the war in Ukraine and rising energy prices, the winter months may be particularly hard for Europeans, which in turn may lead energy prices to rally once again as they did when the war started. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
