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The main contract for 2-year Treasury bond futures (TS) remained unchanged, the main contract for 5-year Treasury bond futures (TF) remained unchanged, the main contract for 10-year Treasury bond futures (T) fell by 0.03%, and the main contract for 30-year Treasury bond futures (TL) fell by 0.12%.At the close of the morning session, domestic futures contracts showed mixed results. Low-sulfur fuel oil (LU) rose nearly 8%, SC crude oil rose nearly 6%, synthetic rubber and fuel oil rose over 4%, container shipping to Europe rose nearly 4%, and liquefied petroleum gas (LPG) rose over 3%. On the downside, Shanghai silver fell over 9%, Shanghai tin and apples fell over 3%, and platinum and red dates fell over 2%.On May 18th, Kazuhiro Sasaki, Head of Research at Philips Securities Japan, stated that at current yield levels, foreign investors may find it easier to buy Japanese government bonds, and he wouldnt be surprised if domestic investors sold foreign bonds and bought Japanese government bonds instead. He said, "From an exchange rate perspective, foreign capital inflows into Japanese bonds could lead to a stronger yen, which could put some pressure on the Japanese stock market." Rising long-term Japanese government bond yields mean that policy rates may rise, which would be a negative factor for the stock market. If interest rates rise too quickly, it will have a significant negative impact on the stock market. This cautious sentiment is intensifying against the backdrop of inflation concerns triggered by rising oil prices.Futures News, May 18th - According to foreign media reports, Malaysian palm oil futures recorded their second consecutive day of gains on Monday, mainly supported by stronger prices in Dalian palm oil, Chicago soybean oil, and crude oil, while the weak ringgit also provided assistance. On the policy and export front, Malaysia has lowered its June reference price for crude palm oil to ensure that export tariffs remain at 10%. Meanwhile, data from inspection agency AmSpec shows that Malaysian palm oil exports from May 1st to 15th are expected to decline by 16.5% compared to the same period last month.On May 18th, Fu Linghui, spokesperson, chief economist, and director of the Department of Comprehensive Statistics of the National Economic Bureau, stated at a press conference held by the State Council Information Office that industrial production growth fluctuated in April, which is a normal monthly fluctuation. Cumulatively, from January to April, the added value of industries above designated size increased by 5.6% year-on-year, maintaining a steady and relatively rapid growth trend. Overall, industrial production is progressing steadily, with continued trends towards high-end, green, and intelligent development. However, it should also be noted that there are currently many external uncertainties, increasing operating cost pressures on enterprises, and some enterprises are still facing difficulties. In the next stage, it is necessary to earnestly implement the spirit of the Central Economic Work Conference and the arrangements of the National Peoples Congress and the Chinese Peoples Political Consultative Conference, focusing on expanding domestic demand, strengthening innovation-driven development, developing new types of productive forces according to local conditions, strengthening the supply of energy and raw materials, alleviating enterprise difficulties, and promoting high-quality industrial development.

Oil Quiet As Price Cap Suggestion Assists in Relieving Supply Concerns

Skylar Williams

Nov 25, 2022 14:48

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Benchmark Brent oil declined on Thursday, while West Texas Intermediate (WTI) crude remained unchanged, hovering at two-month lows due to uncertainty about the degree to which a proposed G7 restriction on the price of Russian oil would limit supply.


A larger-than-anticipated rise in gasoline inventories in the United States and an expansion of COVID-19 limitations in China also knocked on oil prices.


At 15.15 p.m. ET (2015 GMT), Brent oil prices decreased 29 cents, or 0.3%, to $85.12 per barrel, while U.S. WTI crude futures decreased 2 cents, to $77.96 per barrel.


Due to the Thanksgiving break in the United States, trade volumes were quite low.


The announcement on Wednesday that the expected price ceiling for Russian oil may surpass the current market level triggered a decrease of about 3 percent for both benchmarks.


European Union nations remained divided over what level to cap Russian oil prices to limit Moscow's ability to pay for its battle in Ukraine without causing a global oil supply shock; if positions converge on Friday, more conversations are possible.


A European official claimed that the G7 is discussing a cap of $65-$70 per barrel for Russian oil transported by sea, but European Union member states have not yet reached an agreement on a price.


A higher price ceiling might encourage Russia to continue selling its oil, decreasing the possibility of a global oil supply shortage.


According to two sources, several Indian refiners are discounting Russian Urals crude by between $25 and $35 per barrel compared to the worldwide benchmark Brent oil. Urals is Russia's principal crude export.


Despite the obstacles, Bart Melek, global head of commodities market strategy at TD Securities, is rather optimistic about oil. "The Russian price ceiling is another aspect that contributed to the current price fall," he stated.


The Energy Information Administration (EIA) said on Wednesday that gasoline and distillate inventories in the United States climbed substantially during the previous week. [EIA/S]


In contrast, oil stockpiles decreased by 3.7 million barrels to 431.7 million barrels in the week ending November 18, despite a Reuters survey predicting a reduction of 1.1 million barrels.


China reported the highest daily number of COVID-19 cases since the outbreak began over three years ago on Wednesday. Local officials intensified measures to remove the breakouts, raising investor anxiety over the economy and demand for fuel.