EUR/USD 1.15244
-0.056%
Gold 4032.51
-0.453%
Oil 78.278
-5.847%
USD/JPY 156.584
-1.628%
GBP/USD 1.34594
-0.124%
GBP/JPY 210.759
-1.749%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
August 3 - According to data provided by officials, Kuwaiti crude oil production surged in July, increasing by nearly 20% compared to the previous month, reaching its highest average level since the outbreak of the war with Iran. Sources indicated that Kuwaiti crude oil production rose to 1.97 million barrels per day in July, an increase of approximately 300,000 barrels per day from June. They did not specify the specific reasons for the increase. Currently, Kuwaiti crude oil production is several times higher than its April lows, but still about 20% lower than pre-war levels. In recent weeks, Persian Gulf oil-producing countries have made some progress in transporting crude oil through the Strait of Hormuz. Although regional shipping is once again threatened after the collapse of the US-Iran ceasefire agreement, negotiations to restore tanker passage continue. Furthermore, domestic oil demand in the Middle East is also rising due to increased electricity consumption driven by increased demand for air conditioning during the summer. After the US-Iran ceasefire was reached in June, the CEO of Kuwait National Oil Company stated that the company would immediately lift all force majeure notices and expected production to soon recover to 2 million barrels per day. Official data shows that Kuwaiti production briefly reached this level before falling back to approximately 1.9 million barrels per day.Market news: The war with Iran has left Belgium completely dependent on Russian liquefied natural gas in July.White House National Economic Council Director Hassett: Federal Reserve Chairman Warsh is moving things in a positive direction. We respect the independence of the Federal Reserve.International oil prices continued to decline, with WTI crude oil falling by more than 8%. A quick overview of the pre-market conversion of domestic and international crude oil prices in a chart.Spot gold and silver traded in a range. A chart provides a quick overview of the pre-market conversion prices of gold and silver between domestic and international markets.

WTI struggles at $87 as recession worries probe OPEC's forecast and supply deficit fears intensify

Daniel Rogers

Sep 14, 2022 11:42

 156.png

 

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.

Suggestion