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On April 5th, Al Jazeera reported that Iranian Parliament Speaker Ghalibaf posted a picture on social media, claiming it showed the wreckage of a US aircraft shot down by Iranian forces. This followed reports from several Iranian media outlets that a US C-130 transport plane involved in the search for a missing US pilot had been destroyed by a police assault team.On April 5th, Hong Kong Financial Secretary Paul Chan Mo-po stated in his blog that the average daily turnover of Hong Kong stocks in March exceeded HK$300 billion, an increase of over 8% compared to the same period last year. This reflects Hong Kongs status as a reliable safe haven for capital, coupled with the stable economic growth of mainland China and the large number of high-quality companies listing in Hong Kong, providing investors with abundant investment opportunities. Chan noted that as of March 27th, Hong Kongs IPO fundraising this year has exceeded HK$103 billion, ranking first globally. Including subsequent financing, the total fundraising scale is approximately HK$237 billion. More importantly, an increasing number of companies listing in Hong Kong are emerging industries, with over 500 applications currently in the queue. It can be said that more and more companies view Hong Kong as an important window for financing and overseas expansion.April 5th - According to the Israeli Ministry of Health, the total number of Israelis hospitalized due to the conflict since the outbreak of the US-Israel-Iraq conflict has risen to 6,833, with 138 still receiving treatment in hospitals.On April 5th, the Central Command of the Iranian Armed Forces, Hatem Anbia, announced that in response to the US actions to rescue its downed fighter pilot, Revolutionary Guard fighters, in conjunction with the Basij militia and with the cooperation of the Law Enforcement Commands commando unit, shot down and destroyed an enemy aircraft south of Isfahan. The Iranian Islamic Revolutionary Guard Corps also stated that, during the US pilot rescue mission, multiple departments of the Iranian armed forces collaborated to destroy an enemy aircraft. This information has not yet been confirmed by the US. On the same day, according to the New York Times website, two US military transport planes malfunctioned and became "stranded" while carrying out a pilot rescue mission in Iran. The US subsequently dispatched three new aircraft to continue the rescue mission and destroyed the two malfunctioning transport planes.April 5th - According to the China State Railway Group Co., Ltd., on April 4th, the national railway system transported 22.123 million passengers, setting a new record for single-day passenger volume during the Qingming Festival holiday. On April 5th, the national railway system is expected to transport 14.7 million passengers, with 768 additional passenger trains planned.

WTI extends comeback above $85.00 as EIA oil inventories decline by 1.75 million barrels

Daniel Rogers

Oct 20, 2022 15:14

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Futures for West Texas Intermediate (WTI) on the New York Mercantile Exchange (NYMEX) increased after the Energy Information Administration (EIA) announced a decline in crude oil inventories on Wednesday. In the early European session, oil prices have extended their gains above the key resistance level of $85.00 to approximately $85.57.

 

Wednesday, the EIA reported a decrease in oil inventories of 1.75 million barrels, compared to estimates for an increase of 1.38 million and the previous release of 9.88 million. US Vice President Joe Biden's oil release announcement was met with skepticism, but an unexpected fall in oil reserves has instilled optimism in black gold. US Vice President Joe Biden announced the release of 15 million barrels from the Strategic Petroleum Reserve (SPR) in an effort to stabilize the demand-supply mechanism.

 

The anticipation of additional sanctions on the oil supply from Russia, which may cripple the global oil supply, also contributes to the optimism surrounding oil prices.

 

On a broader scale, oil price headwinds are far from finished. Black gold may experience pessimism if the People's Bank of China (PBOC) maintains its current monetary policies. Despite the economic upheaval caused by the continuation of the zero-Covid-19 policy and the weakening real estate market, the PBOC maintained its Prime Lending Rates (PLR). A lack of additional monetary policy could affect the sentiment of market players.

 

As the risk aversion trend has faded, the US dollar index (DXY) has fallen substantially and reached an intraday low of 112.77. S&P500 futures have regained all of their overnight losses as a result of a resurgence in the risk-on market sentiment. US 10-year Treasury yields continue to be solid.