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US President Trump: Our oil reserves are more than the next two largest oil-producing economies combined, and they are of higher quality.On April 11, Indonesian Foreign Minister Sujiyono stated in an interview that the China-Pakistan five-point initiative is a pragmatic measure to promote peace negotiations, achieve a permanent ceasefire, strengthen civilian protection, and normalize economic relations, and Indonesia welcomes it. Sujiyono said that since the beginning of the US-Israel-Iran conflict, Indonesia has called on all parties to immediately cease hostilities and return to the negotiating table to strive for a solution through means consistent with international law. The China-Pakistan five-point initiative prioritizes dialogue and diplomatic channels, which is conducive to creating the necessary conditions for achieving peace, stability, and security in the region and beyond. Recently, China and Pakistan issued a five-point initiative on restoring peace and stability in the Gulf and the Middle East, calling for a cessation of hostilities, the commencement of peace talks as soon as possible, and ensuring the safety of non-military targets, the safety of shipping lanes, and the primacy of the UN Charter.On April 11, sources revealed that the Bank of England plans to discuss the impact of Anthropics newly launched artificial intelligence model with financial institutions. British regulators are joining their counterparts in the US and other countries in warning of the risks posed by this tool. Anthropics Mythos model will be on the agenda of the Bank of Englands next Cross-Market Operations Resilience Group and CMORG Artificial Intelligence Task Force meetings, both scheduled for the next two weeks. The Federal Reserve and the Treasury have already held emergency meetings on the matter, and the Bank of Canada also met with banks and financial companies on Friday to discuss the cybersecurity risks posed by Mythos. These meetings reflect growing concerns among regulators that a new type of cyberattack is becoming one of the biggest risks facing the financial industry.Ukrainian President Zelensky: 175 Ukrainian soldiers and 7 civilians have returned home.On April 11, Iranian government spokesperson Mohammad Hajjerani stated that Irans dispatch of a diplomatic team led by Parliament Speaker Ghalibaf to participate in the US-Iran negotiations demonstrates Irans willingness to engage in dialogue. She emphasized that, as the Iranian president previously stated, Iran will negotiate with its "finger on the trigger." While Iran is willing to engage in dialogue, it lacks trust in the other side, therefore the Iranian diplomatic team will participate in the negotiations with the utmost caution. Hajjerani expressed hope that, under the guidance of the Supreme Leader, the Iranian negotiating team will achieve success.

Natural Gas: XNG/USD bears continue to monitor $2.13 in advance of EIA inventories

Daniel Rogers

Mar 30, 2023 15:59

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Natural Gas (XNG/USD) price fluctuates near the intraday low of $2.23, declining the previous day's corrective rebound off a five-week low ahead of Thursday's European session. In doing so, the energy instrument fails to bolster expectations of increased demand from China in the face of inflation concerns, hawkish central bank actions, and a stronger US dollar.

 

China's willingness to import 65,000 tonnes of Liquefied Natural Gas (LNG) from the United Arab Emirates (UAE) and Premier Li Qiang's upbeat comments have supported the XNG/USD. Premier Qiang of China stated that the economic situation in March is even better than in January and February. However, the policymaker also increased geopolitical tension by opposing trade protectionism and decoupling, which indirectly target the United States and stimulate the Natural Gas bulls.

 

On the other hand, rumors that German gas pipelines are once again reliable for transporting energy, following previous challenges from Russia, impact on the XNG/USD exchange rate. In addition, the majority of central bankers defend their prior bias regarding inflation, exerting downward pressure on the commodity. In addition, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, stated on Thursday, "Urgently need faster, more efficient mechanisms for providing debt support to vulnerable countries." Her remarks revive previously alleviated banking concerns.

 

The US Dollar Index (DXY) adheres to modest gains while S&P 500 Futures struggle around a one-week high set the day before. In addition, the yields on the 10-year and 2-year US Treasury bonds grind higher after tantalizing bond purchasers the day before.

 

Moving forward, Weekly Natural Gas Storage Change data from the US Energy Information Administration (EIA), preceding -72B, may influence XNG/USD price action. Nonetheless, the headlines surrounding inflation and the banking system, as well as China, should be given the utmost focus for direction.