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As of the 2:30 closing bell, the main Shanghai gold futures contract rose 0.80% to 882 yuan/gram, the main Shanghai silver futures contract rose 3.43% to 14,578 yuan/kilogram, and the main SC crude oil futures contract fell 1.17% to 457 yuan/barrel.July 1st - European Central Bank (ECB) Governing Council member Dorenz stated that if the situation in the Middle East does not escalate further during the next policy meeting, the ECB may maintain interest rates unchanged at its next meeting. Speaking at the Sintra Forum on Tuesday, he said that pausing rate hikes would be reasonable if energy prices stabilize, commodity volatility does not spread, and a second wave of effects does not materialize. "If oil and gas prices remain low, there is no need to rush into further tightening," he said. "Based on the current data, a wait-and-see approach before September may be appropriate." With several weeks until the next policy meeting, markets remain volatile, and Dorenz warned that the situation could change at any time, and geopolitical risks have not completely subsided. "Hostility has resurfaced in recent days," he said. "While all parties hope for a lasting reconciliation, the conflict is unlikely to be resolved in the short term, and uncertainty remains high."The Colombian Central Banks interest rate decision was supported by a majority of its seven board members.Market news: Republican hardliners are blocking the House of Representatives efforts to advance a defense policy bill in protest against Trumps legislative proposals regarding voter identity verification.ECB Governing Council member Dorenz: Based on current data, it may be appropriate for the ECB to pause interest rate hikes in July.

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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