EUR/USD 1.14608
-0.024%
Gold 4315.57
-0.642%
Oil 92.981
1.468%
USD/JPY 157.717
0.227%
GBP/USD 1.33663
-0.001%
GBP/JPY 210.815
0.223%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On September 22nd, Ruth Gregory of Capital Economics stated in a report that the UKs public finance data for August was disappointing, which may limit the new UK governments policy ambitions. Public sector borrowing reached £18.3 billion in August, exceeding the Office for Budget Responsibility (OBR) forecast; the main reason for this was increased government spending, rather than weak fiscal revenue. This made the actual borrowing £8.1 billion higher than the OBRs March forecast. This overspending is expected to continue, as real GDP growth slows in the fourth quarter and the government is expected to announce further cost-of-living subsidies. This supports the view that to avoid significant tax increases or a strong market backlash, the government may scale back or postpone many policy objectives when it announces the budget next month.Ukrainian President Zelenskyy: We are continuing to explore the possibility of producing these air defense systems and missiles in Ukraine, while also working with partners to advance the FREYJA anti-ballistic missile project. We expect to see the first results this year.Ukrainian President Zelenskyy: We are also prepared to use funds provided by EU loans to purchase more SAMP/T air defense systems and their associated missiles for Ukraine.September 22 - According to Al-Masirah TV, controlled by the Houthi rebels in Yemen, Saudi Arabia launched a missile attack on the Zahir district and surrounding areas in Saada province, northern Yemen. There are currently no reports of casualties. Saudi Arabia has not yet responded to the report.Ukrainian President Volodymyr Zelenskyy met with French President Emmanuel Macron, primarily to discuss security issues and winter support plans for Ukraine.

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