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Kristina Clifton, foreign exchange strategist at Commonwealth Bank of Australia: Trumps failure to immediately announce tariff measures in the early days of his presidency supports the markets view that the Bank of Japan will raise interest rates on Friday. If the Bank of Japan raises interest rates today, it is likely to adopt a dovish tone because US policies still have a high chance of disrupting the economy and markets.On January 24, ANZ said that the comments of Bank of Japan Governor Kazuo Ueda and Deputy Governor Ryozo Himino contributed to the strength of the yen. They said that if the data is in line with expectations, policy normalization will continue. So far, economic data supports the Bank of Japan to normalize its policy in 2025. After the relevant remarks of Bank of Japan officials, the market almost fully digested the expectation that the Bank of Japan would raise interest rates by 25 basis points this week, indicating that the move would not be surprising. Therefore, the rate hike itself is unlikely to cause USD/JPY to fall sharply. If the Bank of Japans meeting statement, economic forecasts or post-meeting press conferences fail to express a sufficiently hawkish outlook (by market standards), the yen may repeat history and end the week at a lower price. However, ANZ expects the yen to appreciate in 2025, mainly against the Swiss franc and the euro, because of their interest rate prospects.UBTECH Robotics (09880.HK) rose in the short term, increasing by more than 10% during the day.Fitch: Indias large non-bank financial institutions performed better amid mild industry headwinds.US President Trump: If the Russia-Ukraine conflict continues, "large-scale" tariffs and sanctions will be imposed on Russia.

Due to Russia's Production Cut, Oil Prices Rise More Than 2%

Skylar Williams

Feb 13, 2023 14:08

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Oil prices increased by more than 2% on Friday and registered weekly gains of over 8%, as Russia announced plans to restrict oil production the following month in response to price caps imposed by the West on Russia's crude and fuel.


Brent crude futures increased by $1.89, or 2.2%, to settle at $86.39 per barrel. Futures on West Texas Intermediate crude rose $1.66, or 2.1%, to $79.72 a barrel.


Brent exhibited a weekly increase of 8.1%, while WTI rose 8.8%.


Deputy Prime Minister Alexander Novak stated that Russia aims to lower its crude oil production in March by 500,000 barrels per day (bpd), or around 5% of output.


In response to Russia's activities in Ukraine, Western nations have placed restrictions in an effort to suffocate its oil earnings. The output drop implies that the recent price cap and ban on Russian oil products implemented by the European Union on February 5 have had some effect.


According to Rebecca Babin, senior energy trader at CIBC Private Wealth U.S., "most analysts have already accounted for a 700,000-900,000 barrel decline in Russian production in 2023." The resurgence of Chinese demand is essential for crude to exit its present trading range.


Russia's production bucked projections of a fall last year, but additional sanctions will make oil sales more difficult.


Two OPEC+ delegates told Reuters that no action is planned in response to Russia's oil output restrictions.


"In the short-term, Russia's output decrease doesn't mean much because refinery maintenance is dampening demand," said Andrew Lipow, head of consulting firm Lipow Oil Associates. "However, as world oil demand continues to rebound, it deepens the supply shortfall," he added.


With dismal demand statistics from China and fears of a U.S. recession, economic worries continued to exert pressure on pricing. A spike in weekly U.S. jobless claims and an increase in oil inventories also limited advances. [EIA/S]


Goldman Sachs (NYSE:GS) reduced its Brent pricing projection for 2023 to $92 per barrel from $98 and for 2024 to $100 per barrel from $105.


OPEC countries officials told Reuters that oil prices could return to $100 per barrel in 2023 as Chinese demand rebounds following the repeal of COVID restrictions and supply growth is limited by a lack of investment.


Baker Hughes Co, an energy services company, reported that U.S. energy businesses reduced the number of natural gas rigs by the most in a week since October 2017 and added the most oil rigs in a week since June.


The total number of oil and gas rigs, a leading indicator of future output, increased by two to 761 in the week ending February 10.


The U.S. Commodity Futures Trading Commission (CFTC) will again postpone release of a weekly Commitments of Traders report planned on Friday after a ransomware attack on a unit of ION Markets, the agency said in a statement.

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