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Market news: Local authorities said that drone debris crashed at night in an area of an oil depot in Russias Krasnodar Krai, causing a fire that has been extinguished.April 11th - According to foreign media reports, British Prime Minister Keir Starmer has decided to increase UK defense spending at a faster pace than currently planned in an effort to counter potential leadership challenges. The UKs defense spending has fallen behind allies such as Germany, and the government had previously set a target of increasing core defense spending to 3.5% of economic output by 2035. The decision to increase defense spending is essentially finalized, but specific details are still pending. The UK Treasury insists that any significant increase in defense spending must be achieved through tax increases or spending cuts.On April 11, the Japanese government approved an additional subsidy of 631.5 billion yen (approximately US$4 billion) to accelerate Rapiduss entry into the highly competitive field of artificial intelligence chip manufacturing. This funding aims to support Rapiduss business operations for IT company Fujitsu. The Ministry of Economy, Trade and Industry stated on Saturday that the additional funding brings the total amount of government funding and investment in the startup to 2.6 trillion yen (approximately US$16.3 billion) in the current fiscal year (ending March 2027). The ministry said an external committee has inspected Rapiduss wafer fab in northern Hokkaido and approved its technological progress. The newly established chipmaker began developing wafers using 2-nanometer technology last year, aiming to mass-produce cutting-edge semiconductors by 2027 and help Japan reduce its reliance on industry leader TSMC.April 11th - A Bank of America research report indicates that the Eurozone is far more sensitive to oil prices than the United States. The study found that a 10% shock to oil prices would have an inflationary impact of approximately 40 basis points and a corresponding growth impact of over 10 basis points. Both of these effects are roughly twice that in the United States. We believe this result is due to the higher proportion of energy in Europes consumption basket and the regions status as a net importer of oil.On April 11th, Baidu AI Cloud, in collaboration with embodied intelligence companies such as ZeroPower, LingSheng Technology, Fourier, Weite Technology, Topway Intelligence, Shutu Technology, and Songying Technology, launched the Baidu AI Cloud Embedded Intelligence Data Supermarket (Beta Version). This pioneering hierarchical and scalable data tagging system accelerates the large-scale deployment of embodied intelligence. Currently, Baidu AI Cloud provides services to over 30 embodied intelligence companies, including Zhiyuan and Unitree.

Oil Extends Comeback As Markets Anticipate Demand Growth in 2023

Skylar Williams

Dec 20, 2022 11:22

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Oil prices extended gains for a second straight day on Tuesday as investors bet that a Chinese reopening, U.S. buying, and a potentially colder-than-anticipated winter will push a demand recovery through 2023, despite heightened fears of a worldwide recession.


As China began easing COVID-related restrictions on travel and economic activities, optimism for China's reopening was the primary catalyst for the current crude oil recovery rise.


However, this was mostly tempered by an increase in illnesses, which analysts warn could postpone the country's full reopening.


Nonetheless, a number of Chinese government officials, including President Xi Jinping, have committed to boost economic growth from epidemic lows and substantially increase transport demand.


Early road and aviation traffic indicators from the country indicate that transport demand has rebounded strongly in the first few weeks since the reopening, which bodes well for the future need for petroleum.


Brent oil futures traded in London increased 0.7% to $80.66 per barrel by 21:40 ET, while West Texas Intermediate crude futures increased 0.9% to $76.30 per barrel (02:40 GMT). The value of both contracts has rebounded significantly from a one-year low reached earlier this month.


In addition to President Joe Biden's pledge to begin refilling the U.S. Strategic Petroleum Reserve the next year, the potential of rising demand in 2023 helped markets. Beginning in February, the U.S. will purchase 3 million barrels to replenish the Strategic Petroleum Reserve.


Indications of a colder-than-anticipated winter have increased hopes that crude oil demand will increase in the near future, particularly for heating purposes. Recent projections from the International Energy Agency also indicate that petroleum demand will remain high in 2023.


Nonetheless, mounting predictions of a recession in 2023 have recently clouded the picture for crude markets. Analysts have cautioned that rising interest rates and high inflation could further depress economic activity in the coming months, thereby weighing on crude oil demand.


Fears of such a scenario have impacted hard on oil prices in recent weeks, particularly after several major central banks stated that they will continue to raise interest rates despite the worsening economic outlook.


As a result of the fact that a stronger dollar makes dollar-priced commodities more expensive, the currency's rebound also curbed oil price advances.


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