Crude stockpiles decreased by 4 million barrels last week, according to data released on Tuesday by the American Petroleum Institute (API).
Later, on July 27, the Energy Information Administration (EIA) stated that the strategic petroleum reserve’s inventories had decreased by 4.5 million barrels, confirming the decrease in stockpiles. The reserve has now dropped to 422 million barrels, a greater reduction than anticipated.
For the time being, fears of a worldwide slowdown have been offset by the stock reduction. In response to the Fed’s rate increase, the markets sold the dollar globally in anticipation of a slowdown in the pace and magnitude of future rate increases.
The summary of economic predictions (SEP) from June was unaltered, according to comments made by Fed Chair Jerome Powell following the decision. This alleviated market worries about a quickening of raising rates.
Powell pointed out that although there will be additional rate increases, the market is more concerned with the rate of change. At least a 50 basis point hike is anticipated by the market for the Federal Open Market Committee (FOMC) September meeting.