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July 22 (Futures News) – Crude oil continued its upward trend, boosting confidence among fuel oil market participants to support higher prices. Refineries increased supply and were reluctant to sell at low prices, but downstream traders moderately replenished their inventories and remained cautious in their purchases. Market buying activity was slow, and fuel oil prices steadily climbed. It is expected that todays trading will see some areas remain stable while others may see slight increases.Futures News, July 22nd - According to foreign media reports, Brent crude oil futures rose on Tuesday, hitting a five-week high, influenced by the US-Iran conflict and the Houthi threat to impose a naval blockade on Saudi Arabia. This will help boost the early performance of Malaysian crude palm oil futures. The El Niño phenomenon, which may threaten palm oil production in Southeast Asia, also provides support for prices. The Malaysian Meteorological Department stated that with the strengthening of El Niño, Malaysia will experience record-breaking high temperatures next year, raising concerns about declining palm oil production. However, weak demand for Malaysian palm oil exports will limit the markets rebound momentum.Spot gold touched the $4,100/ounce mark for the first time in a week.July 22 – According to the South Korean media outlet *Chosun Ilbo*, the South Korean government stated that it has held a meeting with major exporters to discuss stabilizing the exchange rate through strengthened government-business cooperation. Heo Jang, the Second Vice Minister of Strategy and Finance, held the meeting on July 21 at the Seoul Government Building with major exporters including Samsung Electronics, SK Hynix, Hyundai Motor & Kia, HD Korea Shipbuilding & Marine Engineering, Hanwha Marine, and Samsung Heavy Industries. Heo Jang stated that prior to the exporters meeting in June, the Korean won had depreciated to around 1550 won against the US dollar. However, with exporters increasing foreign exchange settlements, shipbuilding companies increasing forward foreign exchange sales, and capital inflows from SK Hynixs ADR issuance, the won has recently fallen back to the high range of 1400 won against the US dollar, alleviating the imbalance between foreign exchange supply and demand. He predicts that with continued strong semiconductor exports in the second half of the year, South Koreas foreign exchange supply and demand situation will further improve. Participating companies stated that they will further cooperate with the government to stabilize foreign exchange supply and demand, promote the continued improvement in the recent supply and demand trend, and contribute to maintaining stability in the foreign exchange market.July 22 – The Ministry of Industry and Information Technology announced today that the "Notice on Organizing and Carrying Out the Construction of National-Level Zero-Carbon Factories" has been officially released. my country will organize and carry out the construction of national-level zero-carbon factories and zero-carbon computing facilities. The notice clarifies the application requirements for national-level zero-carbon factories, selecting manufacturing enterprises and computing facilities with a certain construction foundation, clear construction goals, and a clear implementation path, and committing to completing the construction goals within the specified period, and including them in the national-level zero-carbon factory construction list.

Oil Price Prediction: After a Sell-Off, Oil Markets Will Rebound

Daniel Rogers

Jul 08, 2022 11:43

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After a significant sell-off that caused it to go below $100, WTI oil recovers. Recent publication of the Weekly Petroleum Status Report by the EIA acted as another market-bullish stimulus. According to the study, oil stockpiles rose by 8.2 million barrels over the prior week. Analysts anticipated a 1 million barrel decrease in crude stockpiles.

 

The rise in crude oil imports, which climbed by 0.8 million bpd from the previous week, was the main cause of the rise in crude stockpiles.

 

The rapid increase in crude stockpiles may have acted as a negative stimulus for the oil market. Other significant factors, though, supported the uptrend. Stocks of gasoline fell by 2.5 million barrels. Gasoline stockpiles are currently around 8% below the five-year average at this point in the year.

 

At 12.1 million bpd, domestic oil output remained constant. This is a positive development for the oil markets because it demonstrates that, despite high oil prices, domestic oil producers are not prepared to quickly raise production.

What Happens To WTI Oil Next?

WTI oil is still trading in the $100 to $120 area, according to today's trade. Recently made attempts to settle below the $100 mark failed, and WTI oil swiftly returned to the prior trading range.

 

Oil markets are still tight even if concerns about the recession have recently put major pressure on oil prices. There are currently no indications of demand destruction. Additionally, the output of domestic oil is not particularly susceptible to high prices.

 

The major concern to oil markets continues to be a probable recession, so traders will keep an eye on it in the forthcoming trading sessions. As a result of Japan's recent announcement that it is battling the seventh wave of the coronavirus, healthcare news will also need to be kept an eye on.