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On April 18, it was reported that on April 17, Ding Xuexiang, Special Representative of President Xi Jinping, Member of the Standing Committee of the Political Bureau of the CPC Central Committee, and Vice Premier of the State Council, and Gurbanguly Berdimuhamedov, Leader of the Nation of Turkmenistan and Chairman of the Council of Peoples Council, jointly attended the groundbreaking ceremony for the fourth phase of the Renaissance Gas Field project in Maly Region, Turkmenistan. Ding Xuexiang emphasized that the fourth phase of the Renaissance Gas Field project carries the earnest expectations of the top leaders of both countries and embodies the common aspirations of the people of both nations. He expressed hope that the relevant departments and enterprises of both sides would meticulously organize and scientifically construct the project, ensuring its solid and orderly progress. Ding Xuexiang stated that China is willing to work with Turkmenistan to take the fourth phase of the Renaissance Gas Field and other major projects as a new starting point to continuously deepen pragmatic cooperation in various fields, promote the development of both countries and regional prosperity and stability, and jointly build a closer China-Turkmenistan community with a shared future. Ding Xuexiang and Gurbanguly Berdimuhamedov jointly visited an oil and gas equipment exhibition, gave instructions via video link to commence drilling operations on-site, and held a groundbreaking ceremony.The Federal Reserve accepted a total of $137 million from four counterparties in its fixed-rate reverse repurchase operations.On April 18, Iranian Foreign Ministry spokesman Baghae stated on the 17th that the US-imposed maritime blockade against Iran is considered a violation of the ceasefire agreement, and Iran will take necessary measures in response. Baghae also emphasized that Iran is the "guardian" of the Strait of Hormuz, and if necessary, Iran will take uncompromising action to earnestly safeguard the interests and rights of its people.The total number of natural gas drilling rigs in the United States for the week ending April 17 was 125, compared with 127 in the previous week.The total number of oil rigs in the United States for the week ending April 17 was 410, compared with 411 in the previous week.

As Fed Worries Mount, Oil Prices Fall And Are on Course For Weekly Losses

Skylar Williams

Feb 17, 2023 11:48

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Concerns over increasing U.S. interest rates and a strong currency mostly overshadowed optimism on a potential recovery in Chinese demand, which led to a modest decline in oil prices on Friday and a projected weekly loss.


The U.S. producer price index inflation for January was higher than anticipated, after a report on the consumer price index that suggested inflation will likely continue tenacious in the world's largest economy.


The findings, along with harsh overnight comments from Federal Reserve officials, indicated further interest rate rises in the coming months, which investors fear will stifle economic growth and weigh on petroleum consumption this year.


Around 21:13 ET, Brent oil prices decreased 0.1% to $84.55 per barrel, while West Texas Intermediate crude futures decreased 0.7% to $77.97 per barrel (02:13 GMT). This week, both futures were expected to lose between 1.5% and 2%.


Overnight, the dollar appreciated as Fed governors James Bullard and Loretta Mester advocated for more rate rises by the central bank, which impacted on petroleum prices. The dollar's strength raises the price of petroleum for overseas customers, hence diminishing global oil demand.


The Biden Administration's anticipated sale of 26 million barrels of petroleum from the Strategic Petroleum Reserve also weighed on oil prices earlier this week. This, along with statistics indicating a far larger-than-anticipated increase in U.S. oil stockpiles, suggested an imminent U.S. supply glut.


This week, oil prices were buoyed by optimism over a rebound in Chinese demand. However, the negative supply and monetary policy cues essentially negated this optimism, resulting in a decline in crude prices. In recent sessions, oil prices fluctuated wildly as markets evaluated a more optimistic demand forecast against hints of impending conflict.


The Organization of Petroleum Exporting Countries and the International Energy Agency both increased their demand predictions for the year, with a rebound in China expected to account for over fifty percent of oil demand this year.


China proposed fresh spending measures this week as part of its efforts to bolster economic development following three years of COVID restrictions.


Although China's relaxation of the majority of anti-COVID policies this year, China's economic figures have been fairly mediocre. Oil bulls are now waiting for more consistent evidence of economic improvement in the top oil importer in the world.

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