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Swedish Finance Minister: The uncertainty of economic growth in Sweden and other eurozone countries is very high.On August 28th, the Hong Kong Stock Exchange (HKEX) website reported that Chery Automobile Co., Ltd. (Chery Automobile), which submitted its IPO prospectus to the HKEX on February 28th of this year, has yet to receive a hearing, six months after submitting it. Currently, the HKEX website no longer displays the prospectus and other documents. In response, Huang Lichong, President of Huisheng International Capital, stated that six months without a hearing and the absence of application documents on the HKEX website typically indicates the application has expired. When contacted by reporters, Chery Automobile stated that they were unable to respond at this time. However, a source close to Chery Automobile stated that the IPO process is proceeding smoothly.On the evening of August 28th, Li Xiang, Chairman and CEO of Ideal Auto, stated during the companys Q2 earnings call that Ideal Auto will definitely reduce the number of SKUs (model types and configurations), returning to the era of the Ideal ONE and L9. He also revealed that Ideal Auto will accelerate its iteration speed in terms of technology platform and product updates. "The problem we face now is that every time we play a card, our competitors play twice. Our overall iteration frequency is like our competitors looking at our cards and playing against us. Therefore, we must accelerate the pace of technology platform and product updates to ensure a faster playing time."On August 28, a White House spokesman said that Robert Primus, a board member of the Surface Transportation Board (STB), the US regulatory body responsible for regulating railroads, was dismissed because he did not conform to the presidents "America First" agenda. The Trump administration plans to nominate new members to the STB in the near future.On August 28th, US President Trump attempted to remove Federal Reserve Governor Tim Cook earlier this week, sparking concerns that the administration would reshape the Feds leadership and push for interest rate cuts. Regarding the relatively calm market, IMF First Deputy Managing Director Gopinath stated, "Its clear that the market still believes that the Feds independence in setting monetary policy rates, and in particular its operational independence, will be maintained. I believe the reality is more concerning than the market currently indicates, but we will have to wait and see."

Next Year's Increased Oil Demand Will Drive Higher Prices

Haiden Holmes

Jan 11, 2023 10:51

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As the U.S. government anticipated record global petroleum consumption for the coming year, the dollar remained near its lowest level in seven months.


In its Short-Term Energy Outlook, the U.S. Energy Information Administration forecasts that the global consumption of liquid fuels would reach 102,2 million barrels per day in 2024, primarily due to the economic growth of India and China.


Brent futures closed at $80.10 per barrel, an increase of 45 cents or 0.6%, and U.S. crude futures settled at $75.12 per barrel, an increase of 49 cents or 0.6%.


After Federal Reserve Chair Jerome Powell refrained from commenting on monetary policy and the economy during a symposium, the markets awaited clarity regarding the Federal Reserve's plans to increase interest rates. Thursday's U.S. CPI data will provide traders with insight into the near-term possibilities.


According to Tamas Varga of oil broker PVM, Thursday's data "may easily determine the course of the financial and oil markets for the next several weeks."


Varga remarked that the currency would weaken if inflation came in lower than anticipated or the November level.


The dollar remained near its lowest level in seven months. As items denominated in dollars become more affordable for holders of other currencies, a declining dollar could enhance the demand for oil.


Fed Governor Michelle Bowman warned that the U.S. central bank will need to further boost interest rates to combat high inflation, which will likely have a negative impact on the labor market.


After China, the world's largest oil importer and second-largest consumer, reopened its borders over the weekend for the first time in three years, both WTI and Brent climbed 1% on Monday.


China also approved a second batch of crude import limits for 2023, bringing the total for this year up by 20% compared to the previous year.


Dennis Kissler, senior vice president of trading at BOK Financial, commented, "Crude is attempting to establish a bottom now that China has loosened most of its restrictions on international travel and business."


As the global economy exerts downward pressure on oil prices, many analysts predict that a resurgence in Chinese demand will only give limited assistance.


"Because the consumption upswing is still in its infancy, oil prices are likely to remain low and range-bound," according to analysts at Haitong Futures.


Barclays (LON:BARC) bank highlighted a $15-25 per barrel downside to its $98 per barrel Brent projection for 2023 if a "recession in global industrial activity similar to 2009-09 arises."


Goldman Sachs (NYSE:GS) forecasts that the Organization of the Petroleum Exporting Countries' (OPEC) enhanced capacity to increase prices without negatively influencing demand will limit downside risks to its positive oil forecast for 2023.


Separately, oil stockpiles rose by around 14.9 million barrels during the week ending January 6, according to market sources citing data issued Tuesday by the American Petroleum Institute. It was anticipated to decline by 2.24 million. EIA data is due Wednesday. [EIA/S]