Both The US Federal Reserve and The European Central Bank have decided to raise interest rates to combat inflation that was caused by COVID-19 policies. The US will be raising its rates to 0.25%, this is the 10th increase since March 2022. Treasury Secretary, Janet Yellen made indicative comments that the country may hit the debt ceiling by June. At this time, it is essential that lawmakers in Washington, D.C. raise the debt ceiling to dodge default.

Around the globe, energy saw major impacts. Iran seized a second oil tanker in the Persian Gulf waters. This seizure is the latest in many seizures and attacks dating back to 2019. Ambrey, a maritime security firm, states that these seizures are likely in retaliation due to a court-ordered seizure of an oil cargo on the tanker Suez Rajan. Approximately 20% of all world crude oil passes through the Straight of Hormuz, between Oman and Iran.

China is seeing futures fall and pressures that are following a manufacturing announcement: “Slowed Activity from China Manufacturing”

Russian Refinery Explosion:

Novorossiik, Russia saw the second explosion of Russian Energy Infrastructure. It was reportedly caused by a drone strike, caused a fire and impacted 1.8m tonnes of annual production capacity, against the refinery’s capacity of 6.6m tonnes, annually. Russia also saw oil and gas revenues go down 64% from Early April, 5.9% down from March. Due to Russia’s invasion of The Ukraine in February 2022, it has seen a large number of sanctions, effecting sale revenue.

Crude oil faced its 3rd, consecutive week of losses. Gasoline stocks build after slipping 9.4% from the previous week. Prices for front month heating oil futures appear to be well lower than what’s expected. Diesel prices remain at or lower than band value.