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Russias Defense Ministry said Ukraine had carried out 14 attacks on Russian energy infrastructure in the past 24 hours.On April 5, the USs "reciprocal tariff" policy was opposed by many countries, and the calculation method of its tax rate also aroused doubts from all parties. They accused the calculation method of being "simplistic and crude", "out of thin air" and "not in line with standard economic practices". Julia Spiess, director of trade and market intelligence at the International Trade Center, said that this is not the standard way economists usually calculate tax rates. The tax rate is calculated based on a formula that relies on the trade deficit or the ratio of the trade deficit to imports. Personally, I have never seen this happen. An analyst at Wedbush Securities, a well-known US investment bank, said in an interview on the 4th that the so-called "calculation formula" announced by the Trump administration has no credibility and is not enough to serve as the basis for rational negotiations on international trade.On April 5, according to a report by the Ukrainian National News Agency on the 4th local time, Ukrainian President Zelensky said at a press conference that Ukraine has selected a law firm that will negotiate on behalf of Ukraine with the United States on the mineral agreement. Zelensky said that he will hold a meeting with the Ukrainian team at the beginning of next week to listen to the key points of the draft agreement, which will meet the needs of Ukraine and reflect the "fairness" of the agreement. After that, the Ukrainian technical team will prepare to go to the United States to start a dialogue with American personnel. Zelensky said that Ukraine is currently negotiating through a technical team and he will not go to the United States for the time being.April 5th news: Surat, India is the worlds largest diamond processing and polishing center, and the United States is its largest export market. Trump announced a so-called "reciprocal tariff" of 26% on Indian exports to the United States, which made Surats diamond industry practitioners worried. At present, Surats diamond business has come to a standstill, and people are waiting to see the possible impact of the tariff policy. Practitioners said that some processors may be forced to reduce production or even close down. Industry insiders pointed out that the US governments imposition of tariffs will lead to higher diamond export prices and weaken demand. Data provided by the Surat Diamond Association show that there are currently about 700,000 people engaged in related work, and the US "reciprocal tariff" policy is threatening the livelihoods of these people.Italian Finance Minister: Our goal is to ease tensions with us after Trump imposed tariffs.

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

Alina Haynes

Jan 04, 2023 15:01

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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.