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The Office of the United States Trade Representative stated that during the U.S.-Mexico negotiations, both teams held in-depth discussions on rules of origin and economic security issues for certain industrial products. The U.S. has also begun conceptual discussions on agriculture, labor, and the environment. The third round of negotiations will be held next month in Mexico City.On June 19th, according to Axios, US President Trump denied that the war with Iran exposed the limitations of his ability to wield power, stating that he still believes there are "no limits." Trump stated that he reached the agreement to prevent the war from escalating into a global economic recession. However, Trump denied feeling any humiliation from the experience. When asked what lessons he learned about the limitations of his power during the war, he said, "No limits." Trump claimed, "We completely defeated them militarily," and even suggested that the memorandum of understanding "could very well be unconditional surrender." He argued that the war actually demonstrated Americas military strength. "Who else can impose such a blockade? I imposed a naval blockade, and not a single ship could get through. Some people tried, but they didnt last long." His implication was that the consequences could have been very serious if the agreement had not been reached.The UKs GfK consumer confidence index for June was -23, compared to a forecast of -24 and a previous reading of -23.The UKs June GfK consumer confidence index will be released in ten minutes.U.S. State Department: We look forward to the ongoing dialogue between Venezuelan political parties and the interim government in the coming weeks.

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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