EUR/USD 1.16044
0.290%
Gold 4350.77
3.328%
Oil 79.307
-4.312%
USD/JPY 160.145
-0.034%
GBP/USD 1.34358
0.189%
GBP/JPY 215.172
0.154%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The UK Maritime Trade Operations Office has received reports of an incident 111 nautical miles southeast of Aden, Yemen, where an oil tanker reported that a small boat approached and fired on it.June 15th - XTBs Kathleen Brooks stated in a report that the US-Iran peace agreement aimed at ending the Middle East conflict and reopening the Strait of Hormuz is putting downward pressure on oil prices and easing inflation concerns. This development comes ahead of Thursdays Bank of England interest rate decision, with investors widely expecting the benchmark rate to remain unchanged at 3.75%. The market may focus on voting divisions and the Bank of Englands communication for clues about the future direction of the interest rate decision. Data from the London Stock Exchange Group shows that the market has already fully priced in the expectation of a 25 basis point rate hike by the Bank of England in December.June 15 – On June 15 local time, the U.S. Central Command issued a statement saying that the U.S. blockade of Iranian ports will remain in effect until the agreement reached with Iran on June 19 is formally signed. The statement said that ships affected by the blockade should not attempt to cross the blockade area without receiving “clear instructions.”June 15th - Tungsten hexafluoride (THF) is a key deposition material in the manufacture of memory chips and advanced logic chips, and is also a popular product in the current surge in demand for electronic specialty gases. Affected by factors such as the withdrawal of some overseas production capacity and the continued expansion of downstream memory chip production, the supply-demand gap has widened, directly driving product prices into an upward trend. Analysts stated, "Taking THF with a significant market price increase as an example, the average monthly price of 5N grade THF in June is expected to reach 1760 yuan/kg, a year-on-year increase of 236%. The surge in demand from memory chips is the core supporting factor." The head of a specialty gas production company in Shanghai stated that helium demand has recently surged, and even with the factory operating on double shifts, supply still cannot meet demand. The head explained, "The semiconductor industry has a very high demand for helium. Many customers are asking, and now the price changes daily. Its possible that todays price will be unavailable tomorrow."June 15th - As the artificial intelligence industry continues to boom, demand for AI chips and high-end memory chips is surging. The production of these chips relies heavily on a special consumable – electronic specialty gases. Electronic specialty gases are electronic-grade gases with a purity exceeding 99.99%, core materials in the field of electronic chemicals, and often referred to as the lifeblood of the semiconductor industry. Driven by strong downstream demand, many core products in the electronic specialty gas market are currently in short supply. Executives from several specialty gas manufacturers stated that their order backlogs have increased significantly, and production lines are operating at full capacity. These executives explained that many of these products ultimately end up in semiconductor wafer foundries, and because some electronic specialty gases are flammable, explosive, and highly hazardous chemicals, customers typically maintain zero inventory. According to these executives, the demand for electronic specialty gases from semiconductor wafer manufacturers has exploded this year, pushing their delivery schedules to near full capacity.

Next Year's Increased Oil Demand Will Drive Higher Prices

Haiden Holmes

Jan 11, 2023 10:51

119.png


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]


Suggestion