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On January 7th, according to foreign media reports, Argus released the latest Japanese refinery data: 1. As of the week ending January 3rd, the average operating rate of Japanese refineries was 89.2%, basically unchanged from the previous week. Crude oil processing volume remained at 2.8 million barrels per day, and operating capacity remained at 3.1 million barrels per day. 2. Japanese refiner Eneos stated that it will suspend planned maintenance on its 128,000 barrels per day crude oil distillation unit (CDU) at the Marifu refinery starting in mid-January. The unit will resume operation in early April. 3. Regarding prices, with gasoline subsidies ending at the end of 2025, as of January 5th, the average retail gasoline price in Japan was 155.70 yen per liter, lower than 158 yen per liter on December 22nd, marking the lowest level since June 2021. 4. Inventory data shows that as of the week ending January 3, crude oil inventories increased by 6.0% week-on-week to 65.12 million barrels; gasoline inventories decreased by 1.0% week-on-week to 10.67 million barrels; kerosene inventories increased by 8.4% week-on-week to 14.01 million barrels; and diesel inventories surged by 22.4% week-on-week to 10.35 million barrels.On January 7th, Guo Ningning, Deputy Secretary of the Fujian Provincial Party Committee and Secretary of the Fuzhou Municipal Party Committee, stated that during the 15th Five-Year Plan period, Fuzhou will formulate and implement an overall development plan for its development zones, creating a number of distinctive benchmark parks. The city will solidly promote the integrated development of port, shipping, and trade along the "Silk Road Maritime Transport," accelerate the construction of channels such as the "Silk Road Flight" and the "Digital Silk Road," and build a comprehensive transportation network integrating sea, land, air, and land. It will also develop high-level platforms such as the China-Indonesia "Two Countries, Two Parks" initiative, the 21st Century Maritime Cooperation Committee, and comprehensive bonded zones, strengthening international cooperation in industrial and supply chains. Adhering to the principle of cross-strait integration with Fuzhou taking the lead, the city will continuously optimize institutional arrangements for integrated development, promoting economic, social, emotional, and overall integration between Fuzhou and Taiwan. It will accelerate the construction of a pilot zone for a cross-strait common market and a cross-strait common industrial cluster, creating a happy home for Taiwanese compatriots, businesses, and youth.On July 7 local time, Saudi Arabia launched airstrikes against Yemen, resulting in 4 deaths.1. WTI crude oil futures trading volume was 879,846 lots, an increase of 6,072 lots from the previous trading day. Open interest was 1,966,625 lots, an increase of 5,296 lots from the previous trading day. 2. Brent crude oil futures trading volume was 163,578 lots, an increase of 13,367 lots from the previous trading day. Open interest was 216,246 lots, a decrease of 739 lots from the previous trading day. 3. Natural gas futures trading volume was 499,109 lots, a decrease of 329,793 lots from the previous trading day. Open interest was 1,592,991 lots, an increase of 15,786 lots from the previous trading day.On January 7th, it was announced that the Shenyang Housing Provident Fund Management Committee has approved five optimizations to housing provident fund loan policies, effective January 2026. These optimizations include: extending the minimum down payment ratio policy period, extending the 15% minimum down payment ratio for housing provident fund loans implemented in November 2024 to December 31, 2026; extending the policy period for determining the number of housing units in housing provident fund loans, extending the policy period for those who have used two or more housing provident fund loans and can obtain a new loan after repayment, implemented in July 2025, to December 31, 2026; and relaxing restrictions on "commercial-to-provident fund" loan conversions for flexible employment and other groups. For those applying for "commercial-to-public" loans, the repayment period of the original commercial loan will no longer be restricted, except for flexible employment contributors, employees contributing in other locations, and active military personnel. The loan ratio limit for "commercial-to-public" loans will be increased from 60% to 80% of the house price. The housing loan support policy for new urban residents and young people will be relaxed, and the scope of application of the housing provident fund loan limit for new urban residents and young people will be increased to 1.3 times the original limit, expanding from newly built commercial housing to both newly built commercial housing and second-hand owner-occupied housing.

Silver Gaps Higher to Start the Trading Week

Daniel Rogers

Jul 19, 2022 11:57

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As the $19 level is under threat, silver prices have gapped upward to start the trading week on Monday. Nevertheless, given the strong resistance in the region, I wouldn't be at all surprised if sellers jumped into the market and underpriced it. The $20 level may be the next objective, even if we break above the $19 level. Since silver is more of an industrial metal than a precious metal, the market will likely continue to view it with distrust.

 

The current state of the world economy is fraught with uncertainty, which is not the best atmosphere for rising silver prices. As a result, I believe we will keep looking for rallies you may join and then start fading. I think that sector is also another spot where you might see sellers reappear because the 50 Day EMA is now around the $21 level and declining fairly swiftly.

 

Breaking down below the $18 mark below would allow for new selling that might take us much lower. In the end, I believe that this market will continue to exhibit "fade the rally" characteristics, barring a significant shift in the Federal Reserve's attitude on monetary policy. I just don't see it occurring anytime soon, therefore from what I can see, the silver market is still in dire straits. In reality, the majority of commodities appear to be seriously in danger.