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Chevron (CVX.N) CEO: The company is in discussions with multiple parties, potentially involving pipeline projects outside of Iraq.July 31 – The US is deepening its support for Japans efforts to stabilize the yen, with the two countries coordinating in the foreign exchange market to a level not seen in decades. On Thursday, Japan appeared to have intervened by buying yen, estimated at around $53 billion; simultaneously, US authorities solicited exchange rate quotes from banks, seen by the market as a precursor to intervention. US Treasury Secretary Bessant stated that the yen was "severely undervalued" and that excessive volatility was unhealthy. Nobuyasu Atago, chief economist at Rakuten Securities Research Institute and a former Bank of Japan official, said, "Bessants influence is very important. The US is now becoming more cooperative with Japans intervention." The timing of Thursdays actions also drew market attention, occurring between the Federal Reserve and the Bank of Japans interest rate decisions, leading to speculation that monetary policy might also be part of coordination between Tokyo and Washington. On Friday, Japanese officials remained ambiguous about whether intervention would be implemented, but they clearly emphasized the coordinated support from the US. Jun Mimura, Japans top official in charge of exchange rate affairs at the Ministry of Finance, stated that the US was providing more than just "moral support." Atago said, "I cant help but feel that they are considering not only coordination on exchange rates but also tacit cooperation on monetary policy."Chevron (CVX.N): Has increased the nominal oil production capacity of its third-generation plant in the Tengiz oil field to 320,000 barrels per day.Chevron (CVX.N) CEO: CPC pipeline is currently operational and ships are still loading this week. 1. Federal Reserves Hamak: With a stable job market, the Fed should focus on inflation. The Feds interest rate policy is not tight enough. 2. According to Mysteel, lithium iron phosphate production is expected to rise to 558,600 tons in August 2026, a 5.2% increase month-on-month. Production capacity in Shandong and Sichuan continued to increase in August, but the actual output from the ramp-up still needs to be monitored. Furthermore, the demand for contract manufacturing from leading producers has further increased. 3. The Indian Meteorological Department said on Friday that after recording average rainfall in July, monsoon rainfall in India in August is likely to be below average, raising concerns about crop yields and economic growth in Asias third-largest economy. The Director General of the Indian Meteorological Department (IMD) said at a press conference that rainfall in August is likely to be 94% below the long-term average. 4. Data released by the U.S. Department of Agriculture (USDA) shows that private exporters reported selling 252,000 tons of soybeans to unknown destinations for delivery in the 2026/2027 marketing year. 5. According to Irans Tasnim News Agency, the Straits Authority of the Persian Gulf issued a statement saying that passage through the Strait of Hormuz is no longer possible due to aggressive actions by the United States. The statement said that once stability and calm are restored, all applications will be reviewed in sequence and on a time-bound basis, and permits will be issued gradually. 6. US President Trump: We will continue to launch a strong strike against Iran. 7. Israeli National Security Minister Ben-Gevill: The draft agreement released by the Peace Committee is unacceptable to Israel. 8. Federal Reserve Chairman Logan: Taking moderate action in the near term will reduce the likelihood of needing stronger action in the future. He favors raising interest rates by 25 basis points. 9. A national conference on promoting grain and material reserves was held in Beijing. The conference emphasized the need to solidly carry out all aspects of grain and material reserves work. First, efforts should be intensified to advance project construction. Second, efforts should be intensified to promote grain purchase and storage regulation. A combination of market-oriented procurement and policy-based storage should be adhered to, and various policy tools should be used in a coordinated manner to stabilize grain prices and ensure smooth sales for farmers.

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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