Tuesday 11 January 2022

Oil Surges Alongside Equities as Powell Reassures Investors - Bloomberg

Oil Surges Alongside Equities as Powell Reassures Investors - Bloomberg

Oil jumped by the most in month after Jerome Powell’s comments to the Senate Banking Committee appeared to be less hawkish than the Federal Reserve had recently telegraphed.

West Texas Intermediate crude rose, in tandem with equity markets, as much as 3.8%, to the highest since November 16. Markets were supported after the Federal Reserve Chair said at some point this year he and his colleagues will allow the Fed’s $8.77 trillion balance sheet to run off.

Powell’s comments were a “a touch more dovish than what was implied in the recent minutes and suggested by other Fed speakers in the last few days,” said Vital Knowledge founder Adam Crisafulli.



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