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On May 28, the General Staff of the Ukrainian Armed Forces announced that Ukrainian troops had attacked the Tuapse oil refinery in Russias Krasnodar Krai. A statement from the General Staff said the attack occurred on the night of May 27. The refinery experienced fire and heavy smoke, and the extent of the damage is being assessed. The Tuapse refinery is one of the largest oil refining enterprises in southern Russia, with an annual refining capacity of approximately 12 million tons.May 28th - More than half of Venezuelans support dollarizing the economy to curb one of the worlds fastest inflation rates. An AtlasIntel survey shows that 31% of respondents support dollarization, while another 26% strongly support the measure. In contrast, those who oppose or strongly oppose it total 30%. According to data from the Venezuelan central bank, the countrys annual consumer price index surged to around 600% in April, up from 475% in December. This hyperinflation has placed a heavy burden on Venezuelans amid a weak job market and low wages. Although Venezuela and the United States have joined forces to try to reopen the economy and attract foreign investment, public confidence and sentiment continue to deteriorate. The survey results show that approximately 79% of respondents considered the economic situation in May to be "bad," an increase of two percentage points from the previous month.Russian Ministry of Defense: Russian troops have established control over Novovasilevka in the Kharkiv region.Futures News, May 28th: 1. Greige Fabric Inventory: On May 28th, greige fabric weaving inventory was approximately 32.4 days. Weaving production enthusiasm is insufficient, and enterprises are inclined to reduce production, thus greige fabric inventory continues to decline. 2. Loom Operating Rate: The market is generally pessimistic about future demand, and coupled with a shortage of best-selling fabrics, the operating rate this week slightly decreased to 59.8%. 3. Greige Fabric/Fabric Trading: According to data monitoring and analysis of feedback from 350 price-collecting units, on May 28th, the Ministry of Commerces China•Shengze Silk and Chemical Fiber Index slightly declined, with the chemical fiber fabric price index closing at 101.36 points, a decrease of 0.05 compared to the previous trading day.XPeng Motors (XPEV.N) shares rose nearly 6% in pre-market trading in the US.

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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