Svmuu News: Central banks around the world are grappling with how to respond to oil prices returning to around $100 per barrel. The Federal Reserve, the Bank of England, and the Bank of Japan (BOJ) may exhibit varying degrees of caution in the face of the prospect of energy-driven inflation.Compounded by the fact that European Central Bank (ECB) has signaled its readiness to raise interest rates again, investors are betting that most central banks in this group may take action as early as September.
Madhavi Arora of Emkay Global noted that the rebound in Brent crude is no longer driven solely by known risks in the Strait of Hormuz and the latest Red Sea blockade.With visible shipping traffic through the Strait of Hormuz now down to near zero and global inventories depleted, new supply disruptions are exacerbating tensions.Furthermore, Russian fuel exports remain constrained following months of Ukrainian drone attacks, while Kazakhstan has begun cutting production after the shutdown of the Caspian Pipeline Consortium’s export terminal. The supply side is facing multiple tightening factors. (Jin Shi)