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Supermicro (SMCI.O) shares fell more than 20% in pre-market trading.March 20 – With oil supplies constrained for the third consecutive week, buyers are forced to seek quick alternative sources, and offshore oil reserves, a crucial buffer, are rapidly dwindling. These reserves could decrease even faster if the US proceeds with Treasury Secretary Bessenters proposal to lift sanctions on Iranian oil shipments. Since the start of the war, crude oil and condensate in floating storage have been declining at a rate of 1.8 million barrels per day, one of the fastest declines in years. According to data intelligence firm Vortexa, these reserves currently stand at approximately 78 million barrels, about one-third of which originate from Iran. Goldman Sachs estimates that approximately 131 million barrels of Russian oil and 105 million barrels of Iranian oil are at sea, which will ultimately only offset the impact of a two-week supply disruption in the Strait of Hormuz. Vortexa analyst Emma Li stated that the Islamic Revolutionary Guard Corps could potentially profit significantly if all cargoes were sold as normal barrels. However, mainstream importers will still face constraints in terms of compliance, financing, and logistics, especially if exemptions are deemed temporary or uncertain.ECB Governing Council member Villeroy: France has very little room for maneuver in terms of budget.ECB Governing Council member Villeroy: Interest rate hikes will be decided at each meeting, depending on the specific circumstances.March 20 - Iranian Islamic Revolutionary Guard Corps spokesman Naini was killed in an attack on March 20 local time.

Despite geopolitical concerns, WTI reverses a two-day rally near $76.50, and the US Dollar falls

Daniel Rogers

Feb 27, 2023 14:27

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WTI crude oil has retreated from its previous weekly high, falling to $76.50 while posting modest losses early Monday. In doing so, black gold struggles to validate geopolitical fears emanating from Russia and fails to cheer a decline in the US Dollar amid hawkish central bank concerns.

 

However, Politico reports that the United States, the United Kingdom, and the European Union (EU) states have imposed new sanctions on Russia after a dispute between Poland and Italy delayed the process for days. Reuters reported that Russia had halted the supply of oil to Poland via the Druzhba pipeline.

 

It should be noted that the recent improvement in the developed economies' economic data has allowed their respective central banks to defend their hawkish bias and suggest further rate increases, despite the looming threat of a recession. Concerns about future poor demand present similar difficulties for energy prices.

 

The US President Joe Biden's willingness to loosen control over the Strategic Petroleum Reserves (SPR) in order to combat the oil shortage could also have an impact on energy prices.

 

Despite the most recent pullback from the seven-week high, the US Dollar's strength also exerts downside pressure on the energy benchmark.

 

American Petroleum Institute (API) and Energy Information Administration (EIA) data on oil inventories may be of interest to oil merchants. Nonetheless, the risk catalysts will receive the lion's share of attention for establishing direction. Oil investors may be encouraged by the rumors of a covert alliance between China and Russia.


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