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US President Trump: Negotiations with Iran are still ongoing. A proposal for an Iran deal may be put forward within days. The blockade remains in effect.On June 9th, NIO-SW (09866.HK) issued an announcement stating that the company has taken note of the U.S. Department of Defenses inclusion of the company on its "Chinese Military Enterprises" (CMC) list. The company believes that being included on the CMC list lacks legitimate grounds, as it is neither a Chinese military enterprise nor a contributor to the military-civilian integration of Chinas defense industry. The CMC list is not a sanctions list. The U.S. government procurement restrictions associated with this list will not affect the companys business, and the CMC list does not restrict the trading of the companys securities. The company will actively communicate with the U.S. Department of Defense to rectify the inclusion on the CMC list, including taking legal action if necessary to protect the interests of the company and all shareholders.On June 9th, Baidu (09888.HK) issued an announcement stating that the company has learned that the U.S. Department of Defense has issued a "Notification Regarding the Designation of Chinese Military Enterprises," according to which the Deputy Secretary of Defense has included the company in the Department of Defenses list of Chinese military enterprises. Since the company is neither a Chinese military enterprise nor a military-civilian integration enterprise of Chinas defense industry, the company believes there is no justifiable reason for its inclusion on this list. The list of Chinese military enterprises is not a sanctions list. The U.S. government procurement restrictions related to this list will not affect the companys business, and the list of Chinese military enterprises does not restrict trading of the companys securities.TD COWEN: Raises its price target for Apple (AAPL.O) from $335 to $350.According to NDTV, an oil tanker carrying 24 Indian crew members caught fire in waters near Oman, but all crew members were safely rescued.

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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