Saudi Cargoes Cancelled as US-Iran Tensions Escalate
Saudi Arabia has informed some European oil refiners that their September-loading crude cargoes are cancelled due to the East-West pipeline closure. This decision is likely a result of the ongoing economic tensions between the US and Iran, which have led to increased energy prices globally.
The Federal Open Market Committee's (FOMC) upcoming meeting on September 15-16 is also expected to impact markets, with a high probability of a quarter-point increase in the federal funds rate. This would take the rate to a range of 3.75% to 4.00%, marking the first hike of this cycle.
The driving force behind the shift in expectations is energy prices, which have risen due to the US sanctions on Iran and the closure of the East-West pipeline. The strengthening US Dollar is also contributing to the increased energy prices and elevated market sentiment.