U.S. Oil Imports Peak as Exports Decline: The United States recorded a notable surge in its net crude oil imports last week,
reaching the highest level in a year.
However, foreign demand for U.S. crude dropped due to a narrowing price spread with Brent crude.
Contents:
U.S. Oil Imports Rise to One-Year High as Exports Fall and Price Spread Narrows
The United States saw a significant jump in net crude oil imports last week, reaching the highest yearly levels.
As foreign demand for American crude weakened due to a narrowing price gap with Brent crude.
According to data released Wednesday by the U.S. Energy Information Administration (EIA),
net oil imports rose by 2.94 million barrels per day (bpd)
to 4.6 million bpd for the week ending June 27 — the highest weekly level in a full year.
This rise coincided with a sharp drop in U.S. crude exports,
which fell to 2.3 million bpd — the lowest weekly figure since July 2023.
The weak foreign demand was attributed to the shrinking price spread between global Brent crude and West Texas Intermediate (WTI),
which fell below $2.20 per barrel, well below the typical $4 threshold that incentivizes exports.
Meanwhile, U.S. crude imports — excluding volumes from the Strategic Petroleum Reserve (SPR)
rose to 6.9 million bpd, the highest level since the beginning of the year.
This reflects a growing reliance on imported oil amid declining global competitiveness of domestic production.
IMF Urges ECB to Hold Rates at 2% Despite Market Expectations for Additional Cuts
Alfred Kammer, Director of the European Department at the International Monetary Fund (IMF),
stated that the European Central Bank (ECB) should maintain interest rates at 2%,
unless unexpected economic shocks significantly alter inflation expectations.
His remarks came from participating in the ECB’s Central Banking Forum in Sintra, Portugal.
He emphasized that inflation risks in the eurozone remain “two-sided,”
requiring a high degree of caution before making any new monetary policy decisions.
While the ECB has notably cut rates in recent months, it has recently hinted at pausing before implementing further cuts.
In contrast, markets continue to price in another cut to 1.75% by the end of the year,
expectations contradict the IMF’s recommendation to keep rates unchanged to ensure inflation stability.
Trump Repeats Call for Powell to “Immediately” Resign as Fed Chair
On Wednesday, former U.S. President Donald Trump demanded that Federal Reserve Chair Jerome Powell step down,
stating he should “resign immediately.”
The statement comes amid Trump’s ongoing criticism of the Fed’s policies, which he believes obstruct economic growth.
Although Trump initially appointed Powell as Fed Chair during his first term,
tensions have escalated several times.
Later, President Joe Biden chose to reappoint Powell for a second term.
This move sparked significant debate within political and economic circles about the Federal Reserve’s independence and future direction.
U.S. Oil Imports Peak as Exports Decline: