Oil prices are once again under pressure as inflation data suggests the Fed will keep interest rates higher for longer. Meanwhile, COP28 looks set to end in disappointment as nations struggle to agree on any sort of fossil fuel phase-out. 

OPEC is rallying members and affiliated countries to veto a COP28 final document that could call for a phase-out of fossil fuels, saying the undue pressure on fossil fuels might lead to irreversible consequences, triggering the ire of environmentalists.

The COP28 conference has widened the rift between energy-hungry emerging nations and developed countries seeking to curb their carbon footprint, leading to no tangible progress on climate talks. Concurrently, the prospect of seeing US interest rates higher for longer, confirmed by today’s inflation data, has pushed Brent back below the $75 per barrel mark. Should US crude inventories provide another bearish narrative on Wednesday, the plunge down south could get even worse.