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Canadian Trade Minister LeBlanc: We will extend the temporary suspension of the federal fuel tax until January 31, 2027.U.S. Central Command: As of September 2, it has forced 86 merchant ships to change course, rendered 3 ships inoperable, and boarded and inspected 2 ships to ensure they comply with relevant requirements.U.S. Energy Secretary Wright: The United States will impose very strict controls on the flow of funds under the NABEP agreement with Venezuela.On September 3, U.S. Treasury Secretary Matt Bessen stated that the Ukrainian drone attacks on Russian energy facilities are one of the reasons for rising global energy prices. When asked about the high cost of living in the U.S., he first mentioned the attacks before addressing the war with Iran. Bessen said on Fox News Wednesday, "We are currently experiencing an energy shock stemming from both the conflict in Ukraine—because Ukraine decided to bomb Russian energy assets and refined petroleum products, which is putting upward pressure on global prices—and the conflict with Iran." These attacks by Ukraine forced Moscow to extend its diesel export ban until the end of the month. This development, coupled with the relatively smaller volume of fuel shipments passing through the Strait of Hormuz compared to crude oil, has led to a tightening of global supply. Bessen had previously stated that oil pipelines would eventually help energy suppliers bypass the Strait of Hormuz, and that the strait would become irrelevant in the coming years as suppliers develop other energy routes.On September 3rd, Meta released the Muse Spark 1.3 model update, claiming significant performance improvements in coding and intelligent agent tasks. Alexandr Wang, head of Meta AI, stated that the new model is "competitive with state-of-the-art models" and will pave the way for future personal AI agent products, helping users create AI assistants that can work on their behalf around the clock. The price of Muse Spark 1.3 remains consistent with the previous version, a pricing strategy Wang described as "aggressive." Meta also stated that its "contributor tier" option has been well-received by developers. This program significantly reduces the cost of coding products by allowing Meta to use developers work to improve the model, and a "meaning double-digit percentage" of developers have already chosen this option. Wang stated that as model capabilities improve, security has become a crucial issue within Meta, and the company is increasing its investment in security and alignment. Muse Spark 1.3 will be available on Muse Code and the Meta API on the same day, with the highest inference version to be released after additional security testing.

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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