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On May 21st, Tesla officially announced its latest plans for a supervised version of Full Self-Driving (FSD), mentioning that this version can be used in China. Recently, Tesla China posted several job openings related to autonomous driving testing, sparking speculation within the industry about the accelerated rollout of FSD in the Chinese market. A reporter, posing as a consumer, contacted Teslas official customer service, who replied: "The 64,000 RMB Autopilot feature is not compatible with all vehicles; some are only compatible with the 32,000 RMB Enhanced Autopilot feature. The company is actively pursuing the approval process in accordance with relevant national regulations, and will push the approval to domestic customers as soon as possible."Futures Commentary by Everbright Futures: On May 20th, COMEX gold initially fell before rising, surging intraday to close at $4546.2 per ounce, a gain of 0.78%. Domestic SHFE gold futures opened higher and continued to rise in the night session, closing at 995.92 yuan per gram, a gain of 0.88%. 1. Geopolitically, Trump stated on Wednesday that negotiations between the US and Iran had entered the "final stage," reiterating that war would be "very rapid." Meanwhile, media reports indicated that some oil tankers had begun to re-enter the Strait of Hormuz. According to reports, the Iranian Islamic Revolutionary Guard Corps Navy stated on Wednesday that 26 ships, including oil tankers, container ships, and other merchant vessels, had passed through the Strait of Hormuz in the past 24 hours, coordinated with Iran. Influenced by this news, the US dollar and US Treasury yields fell slightly, providing support for gold. However, given the relatively volatile geopolitical news, the impact of further developments on gold prices should be closely monitored. 2. The minutes of the Federal Reserves April policy meeting, released yesterday, showed that participants generally believed that given persistently high inflation data and the uncertainty surrounding the duration of the Middle East conflict and its economic impact, the period of remaining on hold might exceed previous expectations. If the US-Iran conflict keeps inflation high, a rate hike might indeed be necessary. However, since previous expectations for a rate hike had already been partially priced in, the impact on gold prices was limited. Looking ahead, the assessment of the US-Iran conflict remains the dominant factor for gold. Until these uncertainties are effectively resolved, investors should lower their expectations for gold prices in the first half of the year.According to Nippon Television News, Japan is considering proposing a supplementary budget of approximately 3 trillion yen.Hong Kong-listed tech stocks performed poorly, with Bilibili (09626.HK) falling more than 5%, Baidu (09888.HK) falling more than 3%, and Kuaishou (01024.HK), Alibaba (09988.HK), and others following suit.On May 21, Bank of Japan policy board member Junko Koeda expressed support for raising the benchmark interest rate, the latest sign that momentum is building for action as early as next month. "I believe that potential inflation could exceed 2% in the future," Koeda said on Thursday in a speech to local business leaders in Fukuoka, western Japan. "Therefore, I believe it is reasonable for the Bank of Japan to raise the policy rate at an appropriate pace to address high inflation, while considering the pros and cons to the economy." At the April policy meeting, Koeda was one of the majority members who voted to keep the rate unchanged; that meeting saw a 6-3 vote, the largest split since Governor Kazuo Ueda took office. While Koeda did not specify her preferred timing for the next move, her comments likely support speculation that the authorities will raise rates at the next policy decision on June 16. She is the second member in the majority to hint at a possible future rate hike, after the Bank of Japan stated earlier this month that the authorities should raise rates "at the earliest possible stage" as long as the economy remains stable.

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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