Global Markets Stirred by Oil and Fed Expectations
While Brent crude surpassing $109 and expectations of a Fed rate hike caused fluctuations in global markets, a substantial price hike was implemented for diesel.
As Brent crude oil prices exceeded $109 and international giant banks announced expectations of a Federal Reserve rate hike this week, concerns arose in financial markets, accompanied by major increases in fuel prices.
Reasons for the Rise in Oil Prices
Tensions in the Middle East and the closure of an export pipeline following attacks on Saudi Arabia's oil infrastructure triggered oil prices upward.
The barrel price of November Brent crude surpassed $109, deepening inflation concerns on a global scale.
Fed Rate Hike Expectations
Following accelerating inflation in the US and statements by Fed Chair Kevin Warsh, money market probabilities regarding the central bank raising interest rates this week reached 87 percent.
International giant banks such as Goldman Sachs and JPMorgan expect the Fed to implement a 25 basis point rate hike at its meeting this week.
Selling Pressure in the Technology Sector
Concerns that artificial intelligence companies would slow down their technologies significantly increased the selling pressure observed in technology stocks globally.
Decline Seen in Precious Metals
Rising rate hike expectations and developments in global markets caused precious metals to lose value.
The ounce price of gold dropped to $4,253.79, while domestic gram gold pulled back to around 6,684 TRY.
Major Fuel Price Hike
This surge in global oil prices directly reflected on domestic fuel signboards as a price hike.
A price increase of 6.62 TRY was applied to the liter price of diesel, effective from September 15.
Current Diesel Prices by Province
Following the implemented price hike, diesel prices rose to significant levels in major cities.
Diesel began trading at 95.62 TRY in Istanbul, 96.72 TRY in Ankara, and 97.01 TRY in Izmir.