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The U.S. Environmental Protection Agency has submitted four California exemption rules to Congress. These rules previously granted California the authority to set its own emissions standards, including those for cars and trucks.On June 13th, Iranian Foreign Ministry spokesman Baghae stated on the 12th local time that Iran and the United States have reached understandings on most issues, and Iran is currently finalizing the text of the memorandum of understanding. Therefore, Iranian Foreign Minister Araghchis earlier statement that "the two sides are very close to reaching an understanding" is accurate and noteworthy. Meetings of relevant decision-making bodies are underway, and this is an ongoing process. To achieve a final and decisive result, consensus must be reached between decision-making bodies and relevant departments. Baghae also stated that various speculations regarding the content of the agreement text have not yet been confirmed. While specific details of the diplomatic process are not suitable for public discussion at this time, this does not mean the public has no right to know.The U.S. State Department plans to work with Congress to provide $50 million in funding to the Coalition for Epidemic Preparedness Innovations (CEPI). This funding will support research and development efforts to combat medical countermeasures against the Bundibugyo strain of Ebola virus.On June 13, U.S. Energy Secretary Frank Wright stated on Friday that U.S. refiners can still absorb more Venezuelan crude oil. Wright said that Venezuela currently ships about half of its total daily exports of 1.2 million barrels to the United States, and this proportion is likely to rise in the coming months. Wright also stated that Iran is currently not exporting any oil or refined products. During the Middle East conflict, the United States has actively filled the gap in oil exports.Adobe (ADBE.O) shares fell 10%, hitting their lowest level since 2018.

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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