EUR/USD 1.15975
-0.088%
Gold 4326.93
-0.097%
Oil 75.819
0.017%
USD/JPY 160.277
-0.105%
GBP/USD 1.34100
-0.119%
GBP/JPY 214.936
-0.223%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The U.S. May retail sales figures will be released in ten minutes.June 17 – According to sources, European Council President António Costa has contacted the Kremlin in an attempt to push Russian President Vladimir Putin to discuss ending the Russia-Ukraine conflict. Sources indicate that Costas chief advisor has spoken twice with a senior Russian official close to Putin, aiming to pave the way for more substantive negotiations in the future. Last month, Costa stated, "We need to engage in dialogue with Russia at the appropriate time to address the security issues we both face." The three largest European economies – Germany, France, and the UK – have also discussed strategies for coordinating with Ukrainian President Volodymyr Zelensky and encouraging Putins participation in peace talks. European officials believe that the current difficulties faced by Russian troops on the battlefield, Ukraines increased attacks on Russian territory, and the rising economic costs of the war have created an opportunity to bring Putin to the negotiating table. A senior European official stated that as the war enters a new phase, senior European officials are working to coordinate their positions and prepare for increased communication with the Kremlin in the future.June 17th - According to CNN reporter Bryan Mena, while Warsh cannot single-handedly achieve the interest rate cuts demanded by Trump, he has made it clear that the Federal Reserve will not continue with the status quo. Warsh has hired two conservative policy veterans as interim advisors to the Fed: Paul Winfried and Daniel Heyer. Furthermore, Warsh has stated that there is a "large amount of redundant personnel" within the Fed, hinting at a potential major overhaul of the approximately 3,000 Fed employees in Washington. Powell initiated layoffs last year to complement similar actions at the federal government level. Warsh has also suggested that Fed officials view inflation differently, focusing on an alternative inflation measure: the "cut-off mean." At his confirmation hearing in April, Warsh stated that these indicators capture "what the underlying inflation rate is, rather than a one-off price change caused by geopolitical shifts or changes in beef prices." With the new advisors in place, discussions about "systemic change" are underway, and Warshs press conference will undoubtedly be the first to clearly signal how far he intends to go in reshaping the Fed.Market news: EU officials have contacted Moscow seeking to establish a secret communication channel with Putin.British Business Secretary McDonald: We are in extensive contact with the EU regarding steel measures. If Britain does not take action, it will lose its steel manufacturing industry.

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