Bank of America Securities stated in a report that the Federal Reserve's inflation issue has significantly worsened, so it expects three interest rate hikes of 25 basis points each this year, starting in September.

(1) After crude oil fell nearly 2% on Monday, oil prices continued to decline slightly on Tuesday. Increased exports from the Persian Gulf and Saudi Arabia's decision to lower oil prices signal a trend toward a more abundant market supply. (2) Brent crude oil fell below $100 per barrel, and West Texas Intermediate retreated to around $88. (3) Gulf oil-producing countries are transporting more crude oil through the Strait of Hormuz. Although risks remain high, more tankers are choosing to brave this disputed waterway. (4) Kuwait announced that its crude oil production has recovered to about 75% of pre-conflict levels; Iraq is increasing ship charters to export oil through the Strait of Hormuz. (5) Meanwhile, Saudi Aramco has lowered the official selling price of its flagship Arab Light crude for Asian customers to a six-year low in order to compete for market share.

European Central Bank Governing Council member Olli Rehn stated that energy price pressures may persist for some time.

Chevron (CVX.US) CEO: I believe the last major basin has not yet been discovered.

Chevron (CVX.US) CEO: Regarding the proposed oil pipeline from Iraq to the Mediterranean, we may be a participant in a larger consortium.