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Federal Reserve Governor Cook: The Supreme Courts decision to uphold the lower courts ruling and affirm that removal from office must be based on due process and just cause demonstrates that the Feds independence is crucial to fulfilling the Congressional mandate for price stability and full employment.June 29 – Iraqi oil, which had been stranded due to the Middle East conflict, has been successfully shipped out of the Persian Gulf in the past 10 days, thanks to the fragile ceasefire between the US and Iran, which has eased traffic congestion in the Strait of Hormuz. According to tanker tracking data compiled by Bloomberg, ships carrying approximately 14 million barrels of Iraqi oil departed the Persian Gulf in late June and are currently transporting the crude oil to buyers in Asia, Europe, and the United States. This means that the average daily shipment volume over the 10-day period was approximately 1.4 million barrels. Data shows that all cargoes loaded since late February and temporarily stranded in the Persian Gulf have now departed for their final destinations.White House officials: U.S. Secretary of State Rubio and U.S. Special Envoy Witkov will brief Congress by phone on the progress of the Iran peace agreement.Deutsche Telekoms German shares fell nearly 7%, hitting their lowest level since August 2024.On June 29th, the yen fell to its lowest level against the dollar since 1986. This landmark drop has sparked concerns within Japan and put traders on high alert, closely watching for potential market intervention. The yen fell as much as 0.1% to 161.96, breaking below the 161.95 level reached in July 2024 when Japan took action to boost its exchange rate. The Bank of Japan raised its benchmark interest rate to 1% on June 16th, the highest level since 1995. However, this move had little effect, as traders expect the Federal Reserve to maintain a hawkish stance. Furthermore, the Japanese government is expected to call for "appropriate" monetary management in its basic policy guidelines, clearly intended to discourage further interest rate hikes by the central bank. Japan previously conducted a record foreign exchange intervention of 11.73 trillion yen, but the yens exchange rate remained weak. According to foreign exchange reserve data from the Japanese Ministry of Finance, Japan likely used its foreign securities holdings, including US Treasury bonds, in this round of intervention to support the exchange rate.

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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