• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On April 26, according to the Wall Street Journal, in order to simplify the negotiations on reciprocal tariffs, US negotiating officials plan to use a new framework developed by the Office of the United States Trade Representative (USTR), which lists major categories of negotiations, such as tariffs and quotas, non-tariff trade barriers, digital trade, product origin principles, economic security and other commercial issues. In these categories, US officials will put forward specific requirements for individual countries, but people familiar with the matter emphasized that this document may also be adjusted at any time. People familiar with the matter said that the United States initial plan is to negotiate with 18 major trading partners in turn over the next two months. The initial plan is to alternately participate in the talks with six countries per week for three weeks (six countries in the first week, another six countries in the second week, and another six countries in the third week) until the deadline of July 8. If US President Trump does not extend the 90-day suspension period he set by then, those countries that cannot reach an agreement will begin to face reciprocal tariffs.On April 26, after the United States announced additional tariffs on goods from many countries, Peruvian business people expressed concerns that the US governments extreme measures would disrupt the global trade order and may even trigger a global economic recession. Alvaro Barrenechea Chavez, vice president of the Peruvian-Chinese Chamber of Commerce, said that the negative impact of the US tariff policy has begun to emerge and hoped that the US government would rethink. Recognizing the importance of countries working together to promote development, I think this is the best way to become a true "world citizen."Market news: Musks xAI company plans to raise about US$20 billion in a financing round.Conflict situation: 1. Ukrainian top commander: Russia tried to use air strikes as a cover to increase ground attacks, but was repelled by Ukraine. 2. Ukrainian Air Force: Russia launched more than 103 drones in the night attack on Ukraine. 3. Local officials said Ukraine launched an attack in the Belgorod region of Russia, killing two people. 4. The local governor said that Russia launched an attack on the Dnipropetrovsk region of Ukraine, killing one person and injuring eight people. Peace talks: 1. Trump: ① The situation between Russia and Ukraine is gradually becoming clear, and they are "very close" to reaching an agreement. ② Ukraine is unlikely to join NATO. ③ Ukraine has not yet signed the rare earth agreement and hopes that the agreement can be signed immediately. ④ It is foreseeable that the United States will conduct commercial cooperation with Ukraine and Russia after reaching an agreement. 2. Russian Foreign Minister: Russia is "ready to reach an agreement on Ukraine." 3. Russian Presidential Assistant Ushakov: Russia and the United States will continue to maintain active dialogue. 4. Russian Presidential Assistant: Putin discussed the possibility of resuming direct negotiations between Russia and Ukraine with the US envoy. 5. The differences between the United States, Europe and Ukraine are clear. The documents show that European countries and Ukraine have raised objections to some of the US proposals to end the Russia-Ukraine conflict. 6. Market news: As part of the peace agreement, the United States asked Russian President Putin to abandon the demilitarization requirement. Other situations: 1. President of Hungarys OTP Bank: We hope to return to all business areas in Russia after the (Russia-Ukraine) conflict ends. 2. Ukrainian President Zelensky: US ground forces are not necessary for Ukraine. 3. Trump said Crimea will remain in Russia, Zelensky: Never recognize it. Agreeing with Trumps view, Crimea cannot be recovered by force. 4. NATO Secretary-General Rutte met with Trump and senior US officials to discuss defense spending, NATO summit, and the Ukrainian conflict.Rising global trade risks, overall policy uncertainty and the sustainability of U.S. debt top the list of potential risks to the U.S. financial system, according to the Federal Reserves latest financial stability report released on Friday. This is the first time the Fed has conducted a semi-annual survey on financial risks since Trump returned to the White House. 73% of respondents said that global trade risks are their biggest concern, more than double the proportion reported in November. Half of the respondents believe that overall policy uncertainty is the most worrying issue, an increase from the same period last year. The survey also found that issues related to recent market turmoil have received more attention, with 27% of respondents worried about the functioning of the U.S. Treasury market, up from 17% last fall. Foreign withdrawals from U.S. assets and the value of the dollar have also risen on the list of concerns.

Crude oil trading reminder: OPEC cautiously forecast demand, traders profited and oil prices fell, evening EIA data became the key

Eden

Oct 26, 2021 11:03

During the Asian session on Thursday (October 14), U.S. crude oil hovered at US$80.82 per barrel. API data released in the morning showed an increase in inventories. Oil prices continued to fluctuate on Wednesday. The cautious forecast of crude oil demand has led some traders to take profits.



In the day, we will focus on China’s September CPI annual rate, the number of initial claims for unemployment benefits in the United States as of October 9, the changes in EIA crude oil inventories in the United States as of October 8, the IEA’s monthly crude oil market report, and the speeches of many Federal Reserve officials.

Negative factors affecting oil prices


[U.S. crude oil inventories increase to help oil prices fall]

In the morning, the American Petroleum Institute (API) data said that US crude oil inventories increased last week, while gasoline and distillate inventories fell. Data show that as of the week of October 8, US crude oil inventories increased by 5.2 million barrels. Gasoline inventories fell by 4.6 million barrels, and distillate inventories fell by 2.7 million barrels.

In addition, data released on Wednesday by China, the world's largest crude oil importer, showed that crude oil imports in September fell 15% from the same period last year, and oil prices were under pressure.

[OPEC remains cautious about the strength of oil demand]

Although international crude oil prices exceeded US$80 per barrel for the first time in several years, the Organization of the Petroleum Exporting Countries (OPEC) is still cautious about the strength of oil demand. In its monthly market report, the organization lowered its forecast for global oil consumption this year and asked member countries to pay close attention to the market. Although soaring natural gas prices may increase oil use in areas such as power generation, it may also inhibit demand in other areas, such as oil refining.

The OPEC secretariat pointed out in the report that “supported by the demand for seasonal petrochemical products and heating fuels, as well as the potential shift in consumption from natural gas to oil, it has positive expectations for oil demand in the last quarter of this year.” However, earlier this year The actual consumption data at that time was weaker than expected. The report recommends that oil-producing countries “remain vigilant about market fundamentals.”

OPEC lowered its forecast for growth in global oil demand this year from the previous 5.96 million barrels per day to 5.8 million barrels. This change is due to the decline in oil consumption data in the first nine months of this year, but total demand in the fourth quarter was revised up by 120,000 barrels per day to 99.82 million barrels per day.

According to the report, record natural gas prices may cause consumers to switch to oil in certain industries, but this does not mean that oil demand will inevitably be boosted. OPEC said, “Benefiting from higher demand for power generation, refining and petrochemical products, fuel oil, diesel and naphtha may be supported. On the other hand, record natural gas prices have pushed up the cost of electricity, which in turn pushed up the cost of electricity. Refining operating costs. This may affect refinery processing volume and industrial output value, and partially offset the upside potential."

Bullish factors affecting oil prices


[Technology stocks lead the rise, CPI highlights inflationary pressures to boost companies that are easy to pass on costs]

US stocks closed higher on Wednesday, led by technology stocks. The Consumer Price Index (CPI) showed high inflation, boosting the stock prices of companies that are thought to be easier to pass on costs to consumers.

Traders also assessed the minutes of the Fed meeting. The minutes stated that Fed officials generally believed last month that even if the delta strain continues to pose a resistance to the economy, the Fed should begin to reduce monetary stimulus measures during the epidemic period from mid-November or mid-December. .

The Nasdaq 100 index, which has a relatively high technology stake, outperformed the main benchmark stock indexes, and the NYSE FANG+ index composed of giants such as Amazon and Google’s parent company Alphabet Inc. climbed about 1%. The S&P 500 index rebounded after falling for three consecutive days. Delta Air Lines led the decline in aviation stocks after the company warned that rising oil prices would threaten this quarter's results.

The US September CPI rose more than expected, highlighting inflationary pressures. The Biden administration tried to ease supply chain bottlenecks before the Christmas shopping season, but officials admitted that their options were limited.

Nancy Davis, founder of Quadratic Capital Management, said, “The CPI data released on Wednesday marked that high inflation has lasted for about six months. It is not as short-lived as many investors had previously expected. The shortage of labor has led to supply chain disruptions and rapid price increases, which have promoted Overall inflation."

[U.S. consumer prices rose more than expected in September]

The increase in consumer prices in the United States in September exceeded expectations, resuming the previous accelerated upward trend, highlighting the continued inflationary pressure facing the economy.



According to data released by the US Department of Labor on Wednesday, the consumer price index in September rose 0.4% from August. The year-on-year increase reached 5.4%, the largest year-on-year increase since 2008. Excluding volatile food and energy, core inflation rose 0.2% month-on-month.

Unprecedented shipping challenges, shortages of raw materials, high commodity prices and rising wages have all contributed to a sharp rise in producer costs. Many manufacturers passed part of the rising costs on to consumers, resulting in longer-lasting inflation than many economists had previously expected, including Fed economists.

Looking ahead, rising energy prices will further erode American salaries. Although wages have risen in recent months, rising consumer prices are eroding people's purchasing power. Another report released on Wednesday showed that the inflation-adjusted average hourly wage increased by 0.2% month-on-month in September, but fell by 0.8% year-on-year.

[U.S. crude oil production this year has fallen more than previously estimated]

The U.S. Energy Information Administration (EIA) said in its monthly report on Wednesday that the decline in U.S. crude oil production this year will exceed previous expectations, but it will rebound in 2022.

According to EIA, US crude oil production will fall by 260,000 barrels per day to 11.02 million barrels this year, and then rebound to 11.73 million barrels in 2022. In previous forecasts, EIA had predicted that U.S. crude oil production would decrease by 200,000 barrels per day in 2021.

During the COVID-19 pandemic, U.S. crude oil production declined due to declining demand, and it has not yet recovered to the record 12.966 million barrels per day before the November 2019 pandemic. According to the report, due to the decline in crude oil production this year, the consumption growth of oil and other liquid fuels is expected to be lower than previously expected.

EIA expects demand growth to be 1.48 million barrels per day, lower than the 1.55 million barrels per day predicted last month. The agency also lowered its oil consumption growth forecast for next year, from 890,000 barrels per day expected a month ago to 760,000 barrels per day.

[Putin said oil prices may reach US$100 per barrel]

Russian President Vladimir Putin said on Wednesday that oil prices could reach US$100 per barrel, adding that Moscow and its OPEC+ partners are seeking to stabilize the global oil market.

Putin said at an energy forum on Wednesday, "This ($100 per barrel) is very likely, and it (oil prices) is now rising, and we and our partners in OPEC+ are doing our best to stabilize the market."

Putin said that we do not allow large price fluctuations, which is not in our interest. We are not trying to curb production to make oil prices soar... We advocate smooth and balanced changes in (oil production). "

When asked if he plans to increase production to cool the rise in oil prices, Novak said: "We are taking action in accordance with the agreed timetable. The consensus is to increase production by 400,000 barrels per day."

Iraqi Oil Minister Ihsan Abdul Jabbar told reporters, "We think the price will not be higher."

Bank of America's Francisco Blanch said that the current global oil supply gap is about 1 million barrels per day. If cold weather prompts electricity suppliers to switch from natural gas to oil, this shortage in winter may increase by 50%.

Blanch said that oil prices may surge above US$100 per barrel. The basic assumption is that increased air travel will increase demand for oil, which will lead to oil prices reaching US$100 per barrel in 2022. However, due to the situation of natural gas and coal, this time seems likely to be slightly less. There is in advance.



Overall, although Russian President Vladimir Putin is more optimistic about the oil price of US$100/barrel, OPEC is cautious about demand, which increases the profitability of traders, and the API data in the morning shows that the inventory increases, which will limit the rise of oil prices. We are waiting for the evening US oil inventory data. US crude oil inventories are currently expected to increase by 1.05 million barrels. If the data is in line with expectations, under the influence of multiple negative factors, short-term oil prices may fall below the 80 mark again.

GMT+8 8:22, US crude oil is now quoted at US$80.82/barrel.