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On June 13, Iranian Foreign Ministry spokesman Baghae said that any potential understanding between Iran and the United States is merely to promote continued dialogue, not a final agreement; unfreezing Iranian assets will be an indispensable part of any Iran-US understanding. According to the Iranian Students News Agency, Baghae said during a meeting with media representatives that Irans current focus is on ending fighting on all fronts and regional tensions, and that it will not delve into the details of the nuclear issue at this stage. He said the only way to achieve regional security is to end the presence of foreign military forces in the region. Baghae emphasized that the unfreezing of Iranian assets is an important component of the understanding and will not be excluded. Current discussions also include addressing US hostile actions against Iranian vessels and issues related to the Strait of Hormuz. Baghae said that Iran will proceed with the utmost caution in advancing negotiations and the diplomatic process, while remaining vigilant based on past experience. If the other side refuses to fulfill its obligations, Iran can take countermeasures.A senior U.S. government official said: "We believe a trade agreement between the U.S. and India is possible, but we do not expect it to be finalized during the G7 meeting."A senior U.S. government official said a trade agreement with India is expected to be discussed at the G7 summit.A senior U.S. government official said he is willing to negotiate with Canada, but does not expect any breakthroughs.A senior U.S. government official (regarding the G7 meeting) expressed willingness to cooperate on the issue of trade imbalances.

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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