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On July 23, Google revealed in a quarterly filing that its future contract spending commitments reached $811 billion as of the end of June, an increase of nearly $500 billion from three months prior. These figures, disclosed separately from Googles capital expenditure budget, represent purchases already made under supply agreements and outstanding purchase orders. Approximately $200.7 billion of these are short-term purchases. These commitments cover a wide range of areas, including chips, data centers, power, inventory, and content licensing. This significant increase highlights the rapid pace at which Google is locking up resources as it expands the infrastructure supporting its artificial intelligence business. This disclosure further demonstrates the astonishing scale of its AI infrastructure development. Googles parent company, Alphabet, stated on Wednesday that it expects to invest approximately $195 billion to $205 billion in capital expenditures alone this year to compete with companies like Microsoft, Meta, and Amazon in expanding AI computing power.Amazon (AMZN.O) fell 5%, its biggest intraday drop since February 6.Market news: Alphabet (GOOG.O) has pledged to spend $811 billion in the future.On July 23, Shanghai Mayor Gong Zheng met with a cross-party delegation of parliamentarians led by McAleester, Chairman of the European Parliaments Foreign Affairs Committee. Gong Zheng stated that he looks forward to further deepening cooperation with the EU in areas such as trade, industrial investment, and cultural exchanges, and supports outstanding enterprises to invest and operate in each others countries, bringing more beneficial results to Sino-EU friendly exchanges. He hoped that the European Parliaments Foreign Affairs Committee would leverage its strengths to support the EU in strengthening all-round cooperation with Shanghai, making greater contributions to the healthy and stable development of Sino-EU relations.According to Reuters calculations, Russias state oil and gas tax revenue is expected to increase by 60% year-on-year in July, reaching 1.3 trillion rubles, thanks to rising global oil prices.

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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