British Economy Contracting Under Inflationary Pressure
June 13, 2022
The news this morning is more covid restrictions in China which has caused concerns for energy demand, and this has created selling in the early trading.
From John Kemp of Reuters. Britain’s economy has started to contract as surging inflation hits household and business spending. Real output fell or was flat in four of the five months between December and April. The other major European economies, which publish data with longer delays and less frequency, are probably also in the leading edge of a recession.
Citi Research raised their oil price forecast for 2022 and 2023 but they are still lower than most bank forecast. Citi raised their Q3 and Q4 2022 forecast by $12 up to $99 and $85 respectively.
Energy price were lower on Friday mainly impacted by US inflation rising to a 41 year high which put pressure on the US dollar as quicker higher interest rates hikes are now expected by the Fed.
The above news along with reports that Shanghai is again putting more covid restriction in place heled pressure prices lower.
AAA says the national average price of gas breached the $5.00 / gallon mark on Saturday with the national average at $5.0040.
Baker Hughes reported that the US added 6 crude oil rigs, which was the first rise in the past three weeks. The US has 215 more oil rigs online versus last year.