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Nick Timiraos, the Feds mouthpiece, has expressed continued dissatisfaction with Trumps tendency to trigger stock market corrections with any evidence of an overheated economy in economic reports. He reiterated his call for lower interest rates: "The Fed Board and its excellent new leadership must be wise—this time with a bit of patriotism."On September 4th, Douglas Porter, chief economist at the Bank of Montreal, stated that after a period of significantly stronger-than-expected employment data, Canada appears poised for a reality test. He noted that while the August jobs report was undoubtedly weak, it was far from surprising, reflecting in part the continued decline in the labor force. He believes that the slowdown in employment and average wage growth will further reinforce the Bank of Canadas strategy of maintaining unchanged interest rates and help alleviate excessively high market expectations for rate hikes. In August, Canadas overall employment decreased by 41,700, ending a previous series of strong job growth, while the unemployment rate remained unchanged at 6.4%.U.S. Treasury Secretary Bessant: The employment data shows that the (U.S.) economy is not solely driven by the AI construction boom. Canada lost over 40,000 jobs, while our employment data shows a significant increase.September 4th - When inflation is high and the labor market is tight (i.e., there are more job openings than job seekers), employees typically expect higher wages to offset the high cost of living. This is one of the key reasons why the Federal Reserve ensures stable inflation expectations. Fridays jobs report showed that average hourly earnings rose 0.3% month-over-month, while the year-over-year growth rate slowed to 3.1% from 3.2%. A report from Oxford Economics stated, "The Federal Reserve can be reassured that the labor market is not a source of inflationary pressures."U.S. Treasury Department: Latest U.S. sanctions related to Iran target three entities.

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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