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June 14 - Israeli forces launched another airstrike on the southern outskirts of Beirut, the Lebanese capital, today (June 14). This comes after Iran launched a missile strike against Israel that evening following an Israeli attack on Hezbollah targets in the southern suburbs of Beirut on June 7.Preliminary forecasts indicate that the proposal to cap Switzerlands population at 10 million has approximately 45% support, while the opposition votes are around 55%.Libyas National Oil Corporation: Mabrook oil field production has reached 30,000 barrels per day.Reuters reported on June 14, citing a senior Iranian official, that Tehran has agreed not to produce or acquire nuclear weapons under a draft memorandum of understanding with the United States. Prior to a final agreement, Iran has agreed to maintain the status quo regarding its nuclear program, including refraining from uranium enrichment or expanding its nuclear facilities. The draft agreement includes the US agreeing to Tehran diluting its stockpile of highly enriched uranium, with the relevant mechanisms to be discussed within the next 60 days; the US will waive oil sanctions on Iran for a specific period, allowing Iran to sell oil and generate revenue; Iran will immediately reopen the Strait of Hormuz for all merchant ships, and the US will lift its naval blockade; the US has agreed to unfreeze $25 billion in Iranian assets, including through direct cash transfers, regional cooperation, and credit lines. Furthermore, the draft agreement stipulates that the US will not impose any new sanctions on Iran until a final agreement is reached.Preliminary forecasts indicate that Swiss voters tend to oppose the proposal to cap the population at 10 million.

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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