Analyst: Oil prices are moving back toward the 100-yuan mark again, as fears of renewed global central bank rate hikes flare up once more

PANews July 26 — Global central banks are grappling with how to respond to the situation as oil prices return to around $100 per barrel. The US Federal Reserve, the Bank of England, and the Bank of Japan may show varying degrees of concern in the face of an energy-driven inflation outlook. Coupled with signals from the European Central Bank that it is prepared to raise rates again, investors are betting that most central banks in this camp could take action as early as September.

Emkay Global’s MadavI Arora said the rebound in Brent crude is no longer driven solely by the known risks in the Strait of Hormuz and the latest Red Sea blockade. Today, visible shipping through the Strait of Hormuz has fallen to near zero, and global inventories have been depleted, with new supply disruptions further intensifying tensions. In addition, after months of Ukrainian drone attacks, Russia’s fuel exports are still constrained; Kazakhstan has also begun cutting production after the Caspian Sea Pipeline Consortium export terminal suspended operations. Multiple tightenings on the supply side are underway.