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On June 13th, it was reported that 11 departments, including the Ministry of Transport, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, jointly released the "Implementation Plan for Promoting the Large-Scale Application of New Energy Heavy-Duty Trucks." The plan clearly states that by 2030, the penetration rate of new energy heavy-duty trucks will reach 40%, with a total fleet exceeding 1.6 million vehicles, accounting for approximately 20% of the total fleet. This move aims to accelerate the green and low-carbon transformation of the transportation sector. New energy heavy-duty trucks refer to heavy-duty freight vehicles with a total mass of 12 tons or more that adopt new power systems. The plan specifies that 30,000 kilometers of zero-carbon highway transportation corridors will be built along key national highways, and approximately 3,000 heavy-duty truck charging and battery swapping stations will be deployed simultaneously. The plan also aims to promote the electrification rate of fixed-route short-haul transportation in key air pollution control areas such as the Beijing-Tianjin-Hebei region and the Fenwei Plain to exceed 80%.According to Iranian media Fars News: The Iranian Foreign Minister has been accused of undermining Irans negotiating position by pandering to Trumps policies.On June 13th, it was reported that on June 11th, the Shenzhen Municipal Market Supervision Administration convened a citywide administrative guidance meeting on compliance for online transactions during the "6.18" shopping festival. Over 103 representatives from more than 60 platform companies, e-commerce enterprises, and industry associations, including WeChat Mini Programs, Meituan, JD.com, Pinduoduo, Taobao, and Douyin, attended the meeting. At the meeting, the Municipal Market Supervision Administration provided compliance guidance on five key areas: transparency, fair competition, subsidies and promotions, advertising and marketing, and food safety. The purpose of this compliance guidance meeting was to align with the requirements of the State Administration for Market Regulations new regulations, strengthen the main responsibility of businesses, enhance awareness of rational promotion and compliant operation during the "6.18" shopping festival, and create a healthy, orderly, and fair online consumption environment.① Iran 1. Iranian lawmakers say the US attack on Iran again is actually a form of pressure. 2. Irans Islamic Revolutionary Guard Corps stated that Iran is now stronger and better prepared than ever before, and is "ready to act" at any time against any act of aggression. ② United States 1. US media: Officials from multiple countries called to persuade Trump to postpone military action. 2. US officials stated that the US military shot down two Iranian one-way attack drones. 3. Trump: The terms leaked by Iran to "fake news" have nothing to do with the terms of the written agreement. 4. According to CNN, citing defense officials, the US shot down two Iranian attack drones last night. 5. US officials: The Strait of Hormuz will be open under the agreement. Iran will not receive any funds until it fulfills its obligations. 6. According to Reuters: An informed source revealed that the US military shot down several Iranian one-way attack drones flying towards the Strait of Hormuz. The source said that Iranian drones pose a threat to commercial shipping. 7. US Vice President Vance: There is a lot of misinformation surrounding the potential agreement to reopen the Strait of Hormuz and end Irans nuclear weapons program. Iranians have not received any cash, nor will their funds be unfrozen simply because they signed an agreement or attended a meeting. ③ Israel 1. Israeli Prime Minister Netanyahu: As long as I am Prime Minister of Israel—Iran will not possess nuclear weapons. President Trump and I are completely aligned on this issue. 2. Israeli Defense Minister: He and Prime Minister Netanyahu have instructed the Israeli military to prepare to prevent Iran from acquiring nuclear weapons. Israel will not withdraw from the safe zones in Lebanon, Syria, and Gaza. ④ Strait of Hormuz 1. Iranian Foreign Minister: Services related to the Strait of Hormuz will be charged. The management model of the Strait of Hormuz will not be restored to the pre-war state. 2. The US military claims to have diverted 136 ships during the blockade of the Strait of Hormuz; it has rendered 9 ships incapable of navigation to ensure compliance with the blockade. 3. According to the Islamic Republic News Agency (IRNA): Iran will not restore the state of the Strait of Hormuz to the pre-war level. According to the memorandum of understanding with the United States, Iran made no commitments regarding the transfer of control over the Strait of Hormuz. The future management of the strait will be resolved as a regional matter through dialogue and joint decision-making between Iran and Oman. 4. According to Iranian reports, 50 ships are awaiting passage permission from the Islamic Revolutionary Guard Corps Navy after the suspension of passage in the Strait of Hormuz due to US hostile actions. ⑤ Ceasefire Negotiations 1. Iranian media released new details of the Iran-US memorandum of understanding, stating that final confirmation from relevant departments is still required. 2. Reports indicate that the UAE has agreed to unfreeze billions of dollars in funds for Iran, which the UAE Foreign Ministry denied. 3. According to Al Arabiya: Iran is demanding an agreement with the US in a European country to give the agreement international legitimacy. 4. According to CNN, citing sources, Israel is pressuring to prevent the unfreezing of Iranian assets in the ceasefire agreement. 5. Iranian Foreign Minister: The Iran-US memorandum of understanding may be signed within days; the draft includes provisions for a ceasefire on the Lebanese front. The US pledged not to wage war in the memorandum. The only preferred solution for disposing of highly enriched uranium stockpiles is to de-enrich and dilute the relevant materials. 6. G7 official: The US-Iran memorandum of understanding could be signed as early as Sunday in Geneva; Iran subsequently denied the claim that an agreement would be signed in Geneva on Sunday. 7. According to the Islamic Republic News Agency (IRNA): Iran seeks war reparations within a "realistic framework." The current memorandum does not reach any agreement on the nuclear issue. Nuclear negotiations will take place within 60 days of the agreements signing. 8. According to the Islamic Republic News Agency (IRNA): A spokesperson for the Iranian Foreign Ministry stated that both sides have reached consensus on most issues in the negotiations, and we are currently in the final stages of the internal decision-making process. 9. US official: The US and Iran are close to reaching an agreement, which will be signed in the coming days. The terms of the memorandum of understanding include the reopening of the Strait of Hormuz and the lifting of the US blockade of Iranian ports. Irans highly enriched uranium will also be destroyed on-site and subsequently shipped out of the country. Under the agreement, the US will acquire Irans enriched nuclear materials. ⑥ Other situations: 1. Egypt urges the US and Iran to seize the "current opportunity" to end the war. 2. Lebanese President: The state of hostilities will only end when conditions such as Israels withdrawal are met. 3. The Indian Ministry of External Affairs has conveyed to US diplomats that it will ensure that US forces operating in the region take necessary measures to prevent civilian casualties.US President Trump: Before I returned to the Oval Office, Joe Biden opened our southern border to millions of criminals, allowing this foreign army to rape, mutilate, and murder American citizens with complete impunity.

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.