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August 6th - According to sources, the German government is considering whether to nominate Bundesbank President Jean-Claude Nagel as president of the European Central Bank (ECB). Nagels candidacy has become a central topic of discussion in Berlin due to speculation that current ECB President Christine Lagarde might step down prematurely. Given that Nagel is Germanys leading candidate for the position, failing to support him could effectively mean forfeiting Germanys candidacy. Sources say German government officials believe Nagels chances of being elected are low, but still consider pushing for his candidacy a worthwhile strategy, as even if he loses, it could provide leverage for Germany in securing other important positions, such as the ECBs chief economist. This appointment is likely to be the most significant personnel decision facing Eurozone governments in the coming months, and Nagel himself has expressed openness to the opportunity.The China Earthquake Networks Center officially reported that a magnitude 3.9 earthquake occurred at 18:32 on August 6 in Sunan County, Zhangye City, Gansu Province (38.35 degrees north latitude, 99.95 degrees east longitude), with a focal depth of 10 kilometers.On August 6th, Caixin reported that cases of levying personal income tax on Hong Kong insurance income have emerged in Beijing, Hangzhou, and other places, involving two types of income: insurance dividends and interest on prepaid premiums. The applicable tax rate for these cases is 20%. However, this taxation is not yet widespread, and there is no unified and clear enforcement standard. In response, the Hong Kong Insurance Authority stated that the Hong Kong SAR government and the Insurance Authority are closely monitoring the latest developments in the tax arrangements for financial products in mainland China and will maintain close communication with the industry. The Hong Kong Insurance Authority stated that the requirement for Chinese residents to declare and pay taxes on overseas investment income in accordance with the law has always existed, and the market should not over-interpret or speculate. The Hong Kong insurance market is mature, with flexible and advanced product design, and can provide professional services such as currency selection, global asset allocation, life planning, and wealth transfer, which it believes will be attractive to mainland customers.The China Earthquake Networks Center automatically determined that an earthquake of approximately magnitude 3.6 occurred at 18:32 on August 6 near Sunan County, Zhangye City, Gansu Province (38.41 degrees north latitude, 99.93 degrees east longitude). The final result is subject to the official rapid report.On August 6th, a delegation led by Liu Xingjuan, Member of the Administrative Committee of the Monetary Authority of Macao and Chairperson of the Board of Directors of Macao Central Securities Depository and Clearing Limited (MCSD), visited the Shanghai Clearing House for working exchanges. Representatives from Hong Kong Xunqing Clearing Limited accompanied the delegation. Ma Jianyang, Chairman of the Shanghai Clearing House, chaired the meeting, and Huang Ning, Deputy General Manager of the Shanghai Clearing House, participated. The participants engaged in in-depth discussions on topics such as the interconnection of domestic and international bond market infrastructure and the "Southbound Connect" businesss impact on the Macao bond market. All parties expressed their commitment to actively implementing the policy measures announced by Governor Pan Gongsheng at the Hong Kong Currency and Fixed Income Summit, continuing to leverage the role of financial infrastructure, deepening the synergy between the mainland, Hong Kong, and Macao bond markets, and jointly serving the high-level opening-up of the financial sector.

WTI struggles at $87 as recession worries probe OPEC's forecast and supply deficit fears intensify

Daniel Rogers

Sep 14, 2022 11:42

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After reverting from the weekly high, WTI crude oil traders seek clear direction around $87.50 during Wednesday's Asian session. However, the present hesitation in the price of black gold may be attributable to the mixed concerns regarding the demand-supply matrix.

 

The Organization of the Petroleum Exporting Countries (OPEC) indicated in a monthly report that oil consumption will climb by 3,1 million barrels per day (bpd) in 2022 and by 2,7 million barrels per day (bpd) in 2023, which is unchanged from last month. Despite obstacles such as rising prices, the news also highlighted indications that major economies were performing better than projected.

 

The news that the United States intends to replenish its emergency oil reserves, as well as the German and European move to control Russian oil and gas prices, could also be favorable for energy prices. In addition, rumors that the Western oil deal with Iran is a long way off are bolstering fears of a supply bottleneck and should have helped energy bulls.

 

Tuesday's US inflation statistics revived concerns about the Federal Reserve's fast rate hike and exacerbated recession concerns. Also acting as downward drivers for WTI crude oil are expectations of economic slowdown due to China and Russia-related concerns.

 

In spite of this, the US Consumer Price Index (CPI) for August increased by 8.3% year-over-year, surpassing market expectations by 0.1%. However, the monthly data increased to 0.1%, exceeding the -0.1% projected and the 0.0% shown in previous assessments. The core CPI, or CPI excluding food and energy, likewise exceeded the 6.1% consensus and 5.9% prior to printing at 6.3% for the month in question.

 

It should be mentioned that the weekly prints of the American Petroleum Institute's (API) industry inventory report also contributed to the commodity's downfall. The API Weekly Crude Oil Stock climbed to 6,035 million during the week ending September 9, up from 3,645,000 the previous week.

 

In the future, the price of black gold may stay under pressure due to a stronger US dollar and economic troubles. Before today's official weekly inventory data from the U.S. Energy Information Administration, however, the supply crisis concerns could test the bears (EIA). Thursday's US Retail Sales for the month of August and Friday's preliminary reading of the September Michigan Consumer Sentiment Index will also warrant close attention.

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