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The Eurozones seasonally adjusted current account for July will be released in ten minutes.Interest Rate Decision: 1. Interest Rate Decision: The Bank of Japan raised interest rates by 25 basis points as expected. 2. Voting Ratio: 7-2, with Asada and Sato dissenting on the interest rate decision. 3. Forward Guidance: The Bank of Japan will continue to raise interest rates based on economic and price developments and financial conditions. It will review the situation in the Middle East, the demand for artificial intelligence, and the impact of foreign exchange on the economy and prices to formulate policy. 4. Economic Outlook: The Japanese economy is recovering moderately, but it cannot be simply stated that the economic situation is strong. 5. Inflation Outlook: Inflation expectations have risen moderately. Wholesale inflation remains high due to the impact of oil, foreign exchange, and artificial intelligence demand, and there is a risk that underlying inflation will exceed the 2% target. 6. Artificial Intelligence: The Bank of Japan will closely monitor the demand for artificial intelligence, which has an impact on inflation. Press Conference: 1. Interest Rate Outlook: The Bank of Japan will continue to raise interest rates based on economic, price, and financial conditions; it is not considering raising rates at a specific time, and there is no predetermined pace of rate hikes; it does not rule out any specific policy measures, depending on the inflation situation. 2. Economic Outlook: The Japanese economy is likely to continue to grow moderately, and overall financial conditions remain loose. The degree of looseness is diminishing. 3. Inflation Expectations: There is a risk that potential inflation will exceed the 2% target, and the risk of inflation overshooting is rising. The situation in the Middle East is a factor that increases inflation risk. 4. Internal Disagreements: It is normal for committee members to have differing views. Disagreements in this decision-making process are not a problem.Note: The press conference of Bank of Japan Governor Kazuo Ueda has ended.Bank of Japan Governor Kazuo Ueda: However, exchange rates may fluctuate due to various temporary factors such as changes in interest rates.Bank of Japan Governor Kazuo Ueda: The credibility of a nations currency depends on whether the inflation rate is effectively controlled.

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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