China Looks to Jolt Economy
February 21, 2024
China is trying to boost its economy by lowering a key interest rate for mortgages. This could give energy demand in the world’s second largest economy a jolt.
Energy prices were lower in yesterday’s trading as the big sell off in natural gas is having some impact on diesel and gasoline prices. Also, the warmer weather has taken a bit of luster off diesel prices here in the near term.
The continued unrest in the Middle East is a supportive factor for this market. As the threat of attacks on ships in the Red Sea is a huge concern for the energy markets. The energy market has been trading in a range and has worked a risk premium into prices and traders continue to be on the lookout for something that could escalate the situation and disrupt oil supplies or production.
The meetings of the January Federal Reserve meeting will be released today. Traders will be looking for any insight into when the Fed may cut interest rates. The challenge for the Fed is that inflation has remained high and the jobs market strong, which leads traders to look for some rate decreases later this year.