- Oil fell 4.5% this morning to the lowest since January
- Crude is still under pressure amid a string of rate hikes from central banks around the world to fight inflation and a stronger dollar
- This week, several countries joined the U.S. in rising interest rates, including the U.K., Norway, and South Africa
- In the macro markets, yields are up, and equities are trading lower
- The U.S. dollar is stronger; the DXY index hit a new 20-year high this morning
- The EU is reportedly considering a price cap on Russian oil as well as other sanctions in response to Russia's most recent escalation in the conflict with Ukraine (BBG, Reuters)
- EU foreign ministers said that additional sanctions would include "economic and individual" measures at an ad hoc meeting on the sidelines of U.N. talks in New York
- Additionally, three EU diplomats in Brussels said that the new sanctions would be based on the oil price cap agreed by the G7 nations
- The oil cap and other upcoming EU embargoes would likely go into effect in December, said one of the diplomats
- Final sanctions will need to be agreed upon by all EU member states, and the European Commission is expected to make a written proposal next week
- UAE warns that underinvesting in fossil fuels will lead to disaster (BBG)
- The world's failure to invest enough in fossil fuels until cleaner alternatives can fully meet today's energy needs is a "recipe for disaster," according to Sultan Al Jaber, CEO of ADNOC
- He added that the ability of oil producers to respond to further disruptions in energy supplies is constrained, as spare crude capacity is currently less than 2% of world demand