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① Iran 1. Iranian military: If the US launches another military operation, it will face an offensive response. 2. Iranian Foreign Ministry: The US and Israel are using "maintaining energy stability" as a pretext to justify the war against Iran. 3. Iranian Vice President: Iran will no longer allow enemy military equipment to pass through the Strait of Hormuz. 4. Iran: Iran says it is prepared to respond to a potential escalation of the situation by the US. 5. Iran: The US has presented Iran with five key conditions, including that the US will not pay any war reparations and that Iran will only be allowed to maintain one operational nuclear facility. ② US 1. US Energy Secretary: The Strait of Hormuz will reopen no later than this summer. 2. Two US officials revealed that Trump is expected to meet with his national security team in the Situation Room on Tuesday to discuss military options. 3. Sources: Trump met with senior members of his national security team on Saturday to discuss the next steps in the war with Iran. 4. Trump stated on social media on Sunday that if Iran does not act swiftly, it will have nothing. ③ Israel 1. Following the "extension of the ceasefire," Israel launched a large-scale airstrike on southern Lebanon. 2. Sources: Israel has secretly established at least two military outposts in Iraq. 3. Israeli media: Netanyahu and Trump spoke by phone to discuss the possibility of resuming hostilities in Iraq. If military operations against Iraq resume, it is expected that Israel and the United States will launch joint airstrikes. 6. Other situations: 1. The Israeli military claims to have killed a commander at the Hamas operations headquarters. 2. Lebanon claims the Israeli attack caused approximately $2 billion in economic damage. 3. NATO intelligence agencies believe Iran still retains most of its missile stockpile and facilities. 4. A generator outside the Barakah nuclear power plant in the UAE was attacked by a drone and caught fire. 5. The International Atomic Energy Agency: The UAE stated that radiation levels at the Barakah nuclear power plant are normal and that no casualties were reported after the drone attack. 6. The International Criminal Court denies issuing new arrest warrants for several Israeli officials. On May 18, Kyrgyz President Sadil Japarov called on world leaders to vote for Kyrgyzstan as a non-permanent member of the UN Security Council on June 3. Japarov emphasized, "Choosing Kyrgyzstan will reflect the world communitys political will to restore historical justice and ensure that all countries are elected equally to the highest organs of the United Nations."The UAEs nuclear regulator stated that no radioactive leaks occurred following the Barakah nuclear power plant incident, and there is no risk to the public.On May 18, shipping giants CMA CGM and Hapag-Lloyd announced on Sunday that they had suspended all bookings to and from Cuba until further notice. Both companies cited a May 1 U.S. executive order, the latest blow to Cubas crisis-ridden economy. Two sources said the temporary suspension of new orders by the worlds two largest shipping companies could jeopardize up to 60% of Cubas freight volume. This comes after the U.S. oil blockade severely restricted Cubas fuel supply. The executive order signed by Trump on May 1 expanded existing U.S. sanctions on Cuban trade to include "any foreign person doing business in the energy, defense and related materials, metals and mining, financial services or security sectors of the Cuban economy, or any other sector of the Cuban economy."The Saudi Ministry of Defense stated that it has intercepted three drones launched from Iraq, which were shot down after entering Saudi airspace. It reserves the right to respond at the appropriate time and place.

WTI advances toward $75.00 as China-related demand optimism offsets recession fears

Daniel Rogers

Jan 09, 2023 11:55

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In the early hours of Monday, WTI steadily climbs near the intraday high of $74.70 as bullish emotion competes with economic slowdown worries. Despite this, the weaker US Dollar and a light schedule allow buyers of black gold to maintain control following Friday's mixed performance.

 

In spite of this, the risk profile remains elevated in light of China's reopening of its borders after a three-year closure. On the same line, Guo Shuqing, party secretary of the People's Bank of China, made his remarks (PBOC).

 

Reuters, transmitting China unlock news, claimed that "about 2 billion journeys are anticipated this season, roughly doubling the volume of previous year, and recovering to 70% of 2019 levels," citing a statement from the Chinese government.

 

On the other side, PBOC's Shuqing stated, "The world's second-largest economy is likely to recover rapidly due to the country's optimal Covid-19 response and the continued implementation of its economic policies."

 

The US Dollar Index (DXY) fell the most in three weeks the day before, down 0.20% intraday to 103.70 as of press time, as the US employment report failed to excite greenback purchasers and the US activity numbers stoked fears of an economic slowdown. It's worth mentioning that the previous day's disappointing US wage growth, ISM Services PMI, and Factory Orders weighed on Treasury bond yields and the DXY.

 

On a different page, reports regarding a delay in the restoration of the colonial pipeline and the Russia-Ukraine conflict appear to also benefit energy buyers. Traders fear additional rate hikes ahead of the release of the Consumer Price Index (CPI) for December from China and the United States on Wednesday and Thursday, respectively, which tests the positive momentum.