ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

Oil jumps to highest since mid-2015, Fed hike on horizon

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Oil jumps to highest since mid-2015, Fed hike on horizon
The gain in oil prices followed the weekend agreement between OPEC and key non-OPEC states. Image Source: Reuters

Oil prices surged to an 18-month high on Monday after the world`s top crude producers agreed to the first joint output cut since 2001, sparking concerns about inflation, which pushed up U.S. Treasury yields to a more than two-year peak.

Yields also gained ahead of a two-day Federal Reserve policy meeting that starts on Tuesday, where the U.S. central bank is expected to raise interest rates for the only the second time since the global financial crisis.

The gain in oil prices followed the weekend agreement between OPEC and key non-OPEC states. U.S. crude futures rose $1.33 to settle at $52.83 a barrel, a 2.6 percent gain, though that was sharply off the day`s highs.

Brent crude futures rose $1.36 to settle at $55.69, a 2.5 percent rise, after hitting a session peak of $57.89, the highest since July 2015.

There was particular surprise as Saudi Arabia, the world`s top producer, said it may cut its output even more than it had first suggested at an Organization of the Petroleum Exporting Countries meeting just over a week ago.

Energy shares rose sharply in early U.S. trading, helping lift the Dow Jones industrial average <.DJI> and S&P 500 <.SPX> to record intraday highs. But the S&P 500 ended lower along with the Nasdaq.

Consumer discretionaries <.SPLRCD> and tech <.SPLRCT> were among sectors that weighed on the S&P 500.

The OPEC news and surge in oil prices were "good news for economic growth in the U.S. as well as Russia and others. But it will be to some extent tempered by a little bit of an impact on consumer spending," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York. 

"There are so many reasons to believe inflation is going to be headed higher, and this just adds fuel to that fire," which is why bond yields are up and the U.S. stock market is mixed, he said.

The Dow Jones industrial average <.DJI> was up 39.58 points, or 0.2 percent, to 19,796.43, the S&P 500 <.SPX> lost 2.57 points, or 0.1 percent, to 2,256.96 and the Nasdaq Composite <.IXIC> dropped 31.96 points, or 0.59 percent, to 5,412.54.

MSCI`s all-country world stock index <.MIWD00000PUS> was nearly flat, while Europe`s STOXX 600 <.STOXX> ended down 0.5 percent.

Benchmark U.S. bond yields topped 2.5 percent for the first time since October 2014, with analysts saying the OPEC agreement had boosted reflation expectations.

"We have the Fed decision coming up on Wednesday, and people are unsure whether they should buy the dip here," said interest rate strategist Gennadiy Goldberg of TD Securities in New York.

U.S. 10-year notes were down 4/32, while the yield rose to 2.478 percent from 2.464 percent late on Friday. Earlier, the yield touched 2.528 percent, its highest since Sept. 29, 2014.

FED AHEAD

In the currency markets, the dollar fell against most major currencies on concerns the Fed could suggest in an upcoming policy statement that the greenback`s gains had gone too far. 

At the same time, the gains in oil prices boosted commodity-linked currencies.

The dollar index <.DXY>, which measures the greenback against a basket of six major currencies, was last down 0.6 percent at 100.980, easing from an earlier 1-1/2-week high of 101.780.

The Aussie was up 0.4 percent against the dollar at $0.7488, while the New Zealand dollar was up 0.6 percent against the greenback at $0.7181.

Gold prices turned higher after falling to their lowest in more than 10 months as the U.S. dollar fell.

Spot gold rose 0.3 percent at $1,161.62 an ounce after tapping its lowest since Feb. 5 at $1,151.34 an ounce.

(Additional reporting by Gertrude Chavez-Dreyfuss and Richard Leong; Editing by Chizu Nomiyama, Meredith Mazzilli and Andrew Hay)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
oil pricesBrent crude oilCrude Oil FuturesUS oil pricesEconomyOrganization of the Petroleum Exporting Countries (OPEC)non-OPEC
Written By: Reuters
Updated: Tue, Dec 13, 2016
09:32 am
Reuters
RELATED NEWS
Brent crude falls below $75 per barrel for first time since 2021 Brent crude falls below $75 per barrel for first time since 2021
Oil rises to over $80 per barrel  as dollar slumps on slowing inflation Oil rises to over $80 per barrel as dollar slumps on slowing inflation
Foreign investors inflows hit 20-month high of Rs 51,200 cr in August amid improving risk and stable crude oil prices Foreign investors inflows hit 20-month high of Rs 51,200 cr in August amid improving risk and stable crude oil prices
"It is our moral duty to ensure best deal, India can't afford higher oil prices..." EAM Jaishankar on importing Russian oil
Crude below $100– Anil Singhvi decodes factors triggering steep fall in oil prices Crude below $100– Anil Singhvi decodes factors triggering steep fall in oil prices

LATEST NEWS

Unacademy lays off 12% of workforce in its latest round of job cuts

WhatsApp Edit Message Feature: Meta-owned platform developing 'dedicated alert'

Delhi govt approves Rs 39 cr for maintenance of roads in north, south Delhi

What Anil Singhvi thinks of gold vs stocks; learn from the market guru

COVID-19 India cases today: India records 3,016 new cases, Delhi government to hold meeting

Ukraine targets 50% of power from renewables to boost energy security

HCL Tech Q4 results date 2023: When will India's third largest IT firm report earnings?

Ramadan 2023 in India: Check iftar timing for March 29 and sehri timing for March 30

Post office account: Know the minimum balance you need in post office savings account — check out interest rate, deposit and withdrawal limits

Happy Ram Navami 2023: Best wishes, WhatsApp messages, quotes, greetings, images to share with your friends and family on Navratri

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV