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May 1st - In pre-market trading, SanDisk (SNDK.O) fell about 5%, and Western Digital (WDC.O) fell about 7%. Both companies provided guidance that significantly exceeded expectations, but analysts pointed out that the strong results had already been fully priced in, and the guidance "lacked sufficient surprises." Apple (AAPL.O) rose about 3%, with revenue in China continuing to grow by double digits last quarter, and iPhone revenue hitting a record high for the same period. Its revenue guidance for this quarter was unexpectedly strong.May 1st, Futures News – According to foreign media reports, disruptions to global energy flows have accelerated the shift to biofuels, prompting governments and producers worldwide to speed up blending, production, and trade. Brazil, the worlds second-largest ethanol producer, has announced plans to raise the cap on the proportion of ethanol-blended biofuels in gasoline from the current 30% to 32%, aiming to curb rising domestic gasoline prices due to war and control inflation. The Brazilian government stated that this measure could allow the South American nation to stop importing gasoline. Indonesia, the worlds largest palm oil producer, is accelerating the rollout of B50 – one of the worlds most ambitious biofuel blending directives – as part of a nationwide effort to achieve food and fuel self-sufficiency. Neighboring Malaysia, the worlds second-largest palm oil producer, plans to gradually increase the proportion of palm oil-based fuels in diesel from 10% to 20%. In the United States, the war with Iran has become a topic used by biofuel proponents to push the government to allow year-round nationwide sales of high-ethanol gasoline. They argue that increasing sales of this corn-based fuel makes sense, as ethanol is currently cheaper than gasoline, thus alleviating the cost burden on consumers.XPeng Motors (XPEV.N) delivered 31,011 vehicles in April, a 13% increase month-on-month.May 1st - DeepBlue Autos: In April 2026, global sales reached 33,187 vehicles, a year-on-year increase of 64.8%, with overseas sales increasing by 19.03% month-on-month; cumulative global deliveries exceeded 800,000 vehicles.ECB Governing Council member Nagel: The ECB is aware of price risks and is ready to act; the current situation is not as optimistic as the baseline in March.

China COVID-Induced Oil Price Decline May Drive the Price of a Barrel Below $85

Aria Thomas

Sep 02, 2022 11:06

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The picture for oil bulls is unfavorable, and things could worsen before they improve.


New COVID-related lockdowns in China have prolonged the oil selloff for a third day in a row, boosting the likelihood that U.S. crude will go below $85 per barrel for the first time since late January.


Brent crude, the global benchmark for oil traded in London, closed at $92.36 a barrel, down $3.28, or 3.4%, from its session low of $93. Brent prices fell 2.8% on Wednesday and 5% on Tuesday, respectively.


West Texas Intermediate, the standard for U.S. crude traded in New York, finished at $86.61, down $2.94, or 3.3%. Tuesday's decline was 5.5%, while Wednesday's decline was 2.3%.


Thursday's WTI session low was $86, just $1 away from breaching the $85 support.


"From a technical perspective, a break below $85 might drive WTI to test the monthly $82 Middle Bollinger Band," said Sunil Kumar Dixit, chief technical strategist at SKCharts.com. In the case of a fall, the price might reach $77.98 before resuming its climb to the $97-$99 resistance zone.


Again, this is a technical point of view. Obviously, from a broader view on oil, the fundamentals must also be considered," noted Dixit.


Even prior to the China COVID scandal, the fundamentals were at best unclear.


Wednesday, when traders anticipated the oil producing coalition to announce production cuts, OPEC+ gave a more positive demand outlook.


OPEC+ reduced its oil surplus prediction for 2022 to 400,000 barrels per day and predicted a shortage of 300,000 barrels per day for 2023.


The monthly meeting of the 23-nation OPEC+, comprised of the original 13 members of the Saudi-led Organization of Petroleum Exporting Countries and its 10 Russia-led allies, will be held on September 5. If it does not announce any reductions at that time, oil prices may continue to decrease due to fears of weak seasonal demand beginning on September 22.


The White House said on Thursday that Vice President Joe Biden met with Israeli Prime Minister Yair Lapid on Wednesday regarding the revival of a 2015 nuclear agreement that is fervently desired by Iran but fiercely opposed by Israel. This knowledge contributed to Thursday's rise in oil prices. The prospective easing of U.S. sanctions on Iranian oil, which may enhance crude exports by up to one million barrels per day, is at stake.


As reported by Reuters on Thursday, Asia's factory activity dropped in August as China's zero-COVID regulations and cost limits continued to damage businesses, dimming the outlook for the region's weak recovery.


Baoan, the most populous district of Shenzhen, suspended large-scale events and indoor entertainment for three days as the number of COVID-19 cases continued to rise.

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