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On September 11, Foreign Ministry Spokesperson Mao Ning held a regular press conference. A reporter asked about a report released by a US artificial intelligence company smearing Chinese companies for using other models to collect information. What is the Foreign Ministrys comment on this? In response, Mao Ning stated that China has always adhered to the principle of promoting the good development of artificial intelligence, while also firmly opposing the distortion of facts and attacks against China.On September 11, Foreign Ministry Spokesperson Mao Ning held a regular press conference. A reporter asked: We have noticed that some Western politicians have repeatedly expressed so-called concerns about cases related to the anti-China and pro-Hong Kong independence organization "Hong Kong Alliance in Support of Patriotic Democratic Movements in China" (HKASPDMC). On September 11, the Hong Kong court announced the sentencing verdict in the HKASPDMC case. What is the spokespersons comment on this? In response, Mao Ning stated that China has already clarified its solemn position on the HKASPDMC case. Hong Kong is a society governed by the rule of law, and the central government firmly supports the Hong Kong Special Administrative Region in safeguarding national security and combating acts that endanger national security in accordance with the law. Relevant parties should earnestly respect Chinas sovereignty, respect the rule of law in Hong Kong, stop making irresponsible remarks about the handling of judicial cases in the Special Administrative Region, and stop interfering in Hong Kongs judiciary and Chinas internal affairs in any form.September 11 – On September 11, Foreign Ministry Spokesperson Mao Ning held a regular press conference. A reporter asked about South Koreas revision of laws related to preventing industrial espionage. What is Chinas comment on this? Mao Ning stated that the Chinese government has consistently required Chinese companies to conduct international cooperation based on compliance with international rules and laws. At the same time, we believe that all countries should protect the normal investment and business activities of enterprises and provide a fair, just, and non-discriminatory business environment for this purpose.On September 11, Foreign Ministry Spokesperson Mao Ning held a regular press conference. Mao Ning stated that innovation-driven development is the key to Chinas long-term economic growth and rapid improvement in industrial competitiveness. Chinas innovative development has also provided opportunities for the world, with more and more foreign companies choosing to conduct R&D and innovation in China, cultivating global competitiveness in Chinas vast market. Chinas innovation has never sought monopoly; we are willing to share the dividends of innovation with the world and achieve common development.On September 11th, Beijing time, it was reported that the Saudi East-West oil pipeline was suspected of being attacked by the Houthi rebels in Yemen. NASAs FIRMS system detected abnormal thermal anomalies along the pipeline, and the Sentinel-3 satellite captured images of a black plume of smoke spanning 80 to 100 kilometers. Saudi Arabia has not yet issued an official response, and the market is generally taking a wait-and-see approach. The Saudi East-West oil pipeline is an alternative route when the Strait of Hormuz is blocked, allowing Saudi crude oil from the east to bypass the Persian Gulf export port and instead travel via a land pipeline to Yanbu for loading. However, if the pipeline is attacked, Saudi Arabias oil transshipment capacity will be impacted, and Yanbus oil export capacity will be weakened. In addition to the potential threat of a pipeline attack, the recent military advances by the Houthi rebels along the Red Sea coast may again put pressure on Yanbu and related Red Sea energy transport routes. Previously, due to the Houthi rebels intensified attacks near the Bab el-Mandeb Strait, Yanbus crude oil exports had already declined between late July and August. If the Houthi rebels further control key ports, islands, and coastal outposts along the Red Sea coast, Saudi Arabias alternative energy transport routes that bypass the Strait of Hormuz via Red Sea exports will face higher security risks.

WTI crude oil drifts above $80.00 amidst a US Dollar rebound and supply shortage concerns

Alina Haynes

Apr 10, 2023 14:16

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In the early hours of Monday, purchasers of WTI crude oil struggled to maintain the price above $80.70 as risk aversion and hawkish Fed forecasts bolstered the US Dollar. However, threats to Oil supplies, primarily emanating from China and OPEC+, appear to keep purchasers of black gold optimistic.

 

US Dollar Index (DXY) reverses a four-day downtrend near 102.25 despite the inability of US Treasury bond yields to recover due to recession concerns. However, US 10-year and 2-year Treasury bond yields remain under pressure near 3.37 percent and 3.95 percent, respectively. In doing so, the benchmark bond coupons extend the previous day's losses and illustrate the market's flight to protection in response to concerns of an economic decline.

 

In spite of this, the recent disappointing US data reignite concerns of a recession in the world's largest economy and challenge the optimists in the energy sector. However, the positive US Nonfarm Payrolls (NFP) data enabled Fed hawks to return to the table and renew demands for a 0.25 percentage point rate hike in May. The same constrains the value of the US dollar and stimulates demand for WTI crude oil.

 

On the other hand, geopolitical concerns surrounding China, particularly after the dragon nation's military exercises near Taiwan, combine with last week's unexpected OPEC+ production cut to keep Oil purchasers optimistic.

 

China's willingness to defend the global economy through robust monetary and fiscal easing at home also enables Oil purchasers to maintain optimism in the face of optimism among the world's largest Oil consumers.

 

The Easter Monday holiday in spot markets may limit Oil price movements, but the investors appear to be out of steam, so US inflation and Fed Minutes will be closely monitored for signs of a pullback.