• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
According to RIA Novosti, the Russian Federal Security Service (FSB) thwarted a "terrorist attack" targeting senior law enforcement officials in Moscow.Israeli Prime Minister Netanyahu: Israel will continue to strike Iran in complete synchronization with the United States.Sources say that Russia’s Novo Nordisk Ufa refinery shut down its atmospheric distillation unit following Thursday’s Ukrainian drone attack.The White House: Trumps fiscal year 2027 budget seeks $1.5 trillion in defense spending.On April 3rd, the Peoples Bank of China (PBOC) announced it would conduct 800 billion yuan of 3-month outright reverse repurchase operations. With 1.1 trillion yuan maturing this month, this operation resulted in a net withdrawal of 300 billion yuan. Recently, liquidity has remained ample, with market interest rates hovering near 1.2%. Following the Spring Festival, cash flow from residents back to banks, coupled with concentrated fiscal spending at the end of the quarter, has led to generally ample funds in financial institutions since April, further driving down market interest rates. Data shows that on April 3rd, the overnight rate DR001 fell to around 1.23%, a new low for the year; the issuance rate of 1-year interbank certificates of deposit (CDs) from state-owned banks fell below 1.50%, a record low. Market experts stated that against this backdrop, financial institutions demand for central bank liquidity has decreased, and the reduced scale of policy rollovers is expected. The 3-month outright reverse repurchase operation primarily addresses seasonal factors. Historically, the impact of cash injections and withdrawals before and after the Spring Festival is significant in the first quarter. Demand for 3-month outright reverse repos is high in January and February before the holiday, with demand declining after April – a historical pattern.

Despite weakening China inflation, WTI crude oil prices surpass $80 per barrel. API inventories are scrutinized

Daniel Rogers

Apr 11, 2023 14:34

 截屏2023-04-06 下午4.29.32_1024x576.png

 

WTI crude oil reaches a new intraday high near $80.40, buoyed by marginally bullish market sentiment and a weakening US Dollar ahead of Tuesday's European session. Even so, the price of black gold remains within a one-week trading range of approximately $2.0 upon the resumption of full markets following the weekend break.

 

Consequently, the US Dollar Index (DXY) breaks a four-day uptrend by falling to 102.35 at press time, down 0.20 percent intraday. In doing so, the greenback bears the weight of remarks made by the president of the Federal Reserve (Fed) Bank of New York and the vice chairman of the Fed's rate-setting committee, John Williams, who cites rising chances of benign inflation. Rick Rieder, Chief Investment Officer of global fixed income at BlackRock, the world's largest asset manager, said late Monday, according to Reuters, "The Federal Reserve may not need to raise interest rates further to fight inflation, as the aftermath of last month's turmoil in the banking sector and a series of recent labor data point to a slowing US economy."

 

On a separate page, the conclusion of China's military exercises near Taiwan is combined with the Australian-Chinese trade agreement and expectations for increased investment in Japan to illustrate the cautious optimism in the markets. Positive headlines from the International Monetary Fund's (IMF) Managing Director Kristalina Georgieva, who stated on Monday that the global economy is expected to grow less than 3% in 2023, with India and China expected to account for half of the global growth this year, also favored the optimists.

 

In spite of this, CME's FedWatch Tool forecasts that the US Central Bank will raise rates by 0.25 percentage points in May, which challenges market sentiment and WTI crude oil purchasers. Also weighing on risk appetite and energy benchmark prices could be China's disappointing inflation data and a cautious tone ahead of high-profile US data/events.

 

Above all, the OPEC+ supply limits and rising expectations of increased energy demand from the world's largest energy consumer, China, support the upward momentum of WTI crude oil.

 

Moving forward, the weekly report of Oil inventories from the American Petroleum Institute (API), which was -4,346,000 barrels the week prior, could influence WTI prices. For unambiguous direction, the IMF's spring summit and US inflation, as well as the Fed Minutes, will receive the most attention.