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Td Cowen: Raised its price target for Lockheed Martin (LMT.N) from $560 to $600.July 28th - Pictet Wealth Management points out that the market is currently pricing in an unusually high probability of a Federal Reserve rate hike. "While we cannot completely rule out the risk of an unexpected rate hike, the current market pricing appears overvalued," said Senior U.S. Economist Xiao Cui in a report. The latest U.S. inflation data and comments from Fed officials have reinforced expectations that the Fed will keep interest rates unchanged at 3.5%-3.75% this week. However, she stated that officials continue to view inflation as a more significant policy risk, opening the door to tightening policy as early as September. Cui also believes that Logan and Hammark on the committee may vote against a 25-basis-point rate hike, and Kashkari may join this camp.July 28 – The Hong Kong Special Administrative Region (HKSAR) Government and the Ministry of Industry and Information Technology (MIIT) signed a cooperation agreement today (July 28) at the HKSAR Government Headquarters to jointly build a manufacturing innovation center in Hong Kong. Sun Dong, Secretary for Innovation, Technology and Industry, stated that this years budget has proposed allocating funds to build Hong Kongs first overseas national manufacturing innovation center, aiming to promote breakthroughs in key technologies, drive the industrialization of research results, and attract international talent. In this regard, the HKSAR Government supports the Hong Kong Microelectronics Research & Development Institute (MICRI) to take the lead in operating the innovation center, building upon its existing foundation. This move will align with the nations technology and industrial planning priorities and leverage Hong Kongs unique advantages within its existing semiconductor ecosystem.July 28th - On July 27th, Shanghai State-owned Investment Corporation and the Shanghai Branch of the Export-Import Bank of China signed a strategic cooperation memorandum. The two parties will deepen the strategic linkage between state-owned capital and policy-based finance, focus on policy-based financial products to support key strategic projects, explore new models of investment and loan synergy, and jointly cultivate new quality productivity.July 28 - Three sources familiar with the matter revealed on Tuesday that Saudi Aramco is considering a new pricing mechanism for crude oil loaded at Egypts Siddiqr port and shipped to Asia, to reflect increased transportation costs due to longer voyages caused by the diversion of Red Sea exports. Saudi Aramco has not yet immediately responded.

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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