EUR/USD 1.15579
-0.259%
Gold 4501.57
-3.165%
Oil 96.968
2.893%
USD/JPY 159.297
0.997%
GBP/USD 1.33332
-0.723%
GBP/JPY 212.398
0.318%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Israeli military: Strikes are underway against targets in Tehran, the Iranian capital.Iranian Foreign Minister: We seek a permanent end to the war. Many countries are working to mediate and end the war, and Iran is open to any initiative to end the conflict.March 21 – Following the US and Israeli military strikes against Iran, shipping in the Strait of Hormuz continues to be disrupted, destabilizing the global energy supply system. On March 20, Slovak Prime Minister Fico warned that a European oil crisis could occur due to a combination of factors. Fico stated that since the US-Israeli strikes against Iran, the EU has already paid over €6 billion in additional costs due to rising fuel prices. This, coupled with the current economic situation in Europe and the EUs substantial support for Ukraine, has created an "explosive combination." Fico indicated that the future could be very dire, even risking an oil crisis. He urged the EU to expedite the restoration of the Friendship Pipeline.Market news: Iran launched missiles into southern and central Israel.March 21 – According to the Civil Aviation Administration of China (CAAC), in February, air passenger traffic reached 68.305 million, a year-on-year increase of 11%. Data shows that in February, domestic air passenger traffic reached 61.442 million, a year-on-year increase of 10.5%; international air passenger traffic reached 6.863 million, a year-on-year increase of 15.6%. Regarding cargo and mail transportation, in February, air cargo and mail volume reached 740,000 tons, a year-on-year increase of 22.3%. Among them, domestic air cargo and mail volume reached 408,000 tons, a year-on-year increase of 21.2%; international air cargo and mail volume reached 332,000 tons, a year-on-year increase of 23.8%.

WTI falls further below $77.00 as China's Covid crisis stalls the rebound

Alina Haynes

Jan 04, 2023 15:01

246.png

 

West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) have experienced a straight decline after testing the previous week's high at $81, accompanied by minimal buying demand. As investors fret over China's sluggish economic recovery, the oil price has plummeted to a level close to $77.00 and is likely to continue falling.

 

The market anticipates a sluggish recovery in China's economic operations following a surge of Covid-19 cases caused by the administration's rapid reopening efforts. The Covid situation is becoming increasingly precarious as medical authorities lose control over the management of sick patients.

 

According to historical evidence, the reopening of an economy results in pent-up demand for commodities, which accelerates inflationary pressures dramatically. Analysts at Danske Bank opine, "A Chinese rebound will have a favorable influence on the global economy, but its effect on commodity prices would be inflationary."

 

In the meantime, the oil price was not supported by Caixin Manufacturing PMI data that exceeded expectations. IHS Markit provided economic statistics of 49.0, which is greater than the consensus estimate of 48.8 but less than the previous release of 49.4.

 

The US Dollar Index (DXY) is able to hold above the crucial support level of 104.00. The oil price is likely to remain on edge until the Federal Open Market Committee (FOMC) minutes are released. Despite the fact that the bulk of inflation indicators indicate lower demand and indications that inflation has peaked, the labor market is exceptionally tight and the inflation rate is still much above the objective of 2%. The FOMC minutes will provide the forecast for monetary policy in CY2023.

 

More policy tightening by the Federal Reserve (Fed) could raise the possibility of recession, which is susceptible to oil demand and could have a big impact on oil prices.


Suggestion