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US Treasury Secretary Bessant: Interest rates are unrelated to repurchase decisions.U.S. Treasury Secretary Bessant: If there are any changes to the balance sheet, the Treasury and the Federal Reserve will work together.U.S. Treasury Secretary Bessenter: We will announce priorities for strengthening fiscal consolidation.The Iranian Foreign Ministry stated that the economic sanctions imposed by the United States on Iran violate the basic human rights of Iranian citizens and are a typical example of "economic terrorism" and "crimes against humanity."1. The Houthi rebels claimed to have attacked "sensitive" targets at Najran Airport and the Saudi Aramco plant in Najran. Saudi Arabia has not yet immediately confirmed this. 2. The U.S. Department of Energy will release $500 million in subsidies to seven key mining projects. 3. This week, Mysteels Coal and Coke Division surveyed the profitability of independent coking plants nationwide. The national average profit per ton of coke was -149 yuan/ton; the average profit for near-grade coke in Shanxi was -148 yuan/ton, in Shandong -130 yuan/ton, in Inner Mongolia -161 yuan/ton, and in Hebei -96 yuan/ton. 4. According to USDA agricultural drought monitoring data, as of August 18, 2026, the drought rate in U.S. soybean producing areas was 26%, unchanged from the previous week; the drought rate in U.S. corn producing areas was 28%, down 1 percentage point from the previous week; and the drought rate in U.S. cotton producing areas was 44%, up 4 percentage points from the previous week. 5. An Indian government order on Thursday allowed duty-free imports of 1 million tons of sugar, a move aimed at lowering record-high sugar prices. 6. The U.S. Department of Agriculture reported that for the week ending August 13, net export sales of U.S. corn for the 2025/2026 marketing year were 233,000 tons, compared to 411,000 tons the previous week; net export sales of soybeans for the 2025/2026 marketing year were 85,000 tons, compared to 75,000 tons the previous week; net export sales of cotton for the 2026/2027 marketing year were 209,000 bales, compared to 1,000 bales the previous week; and net export sales of wheat for the 2026/2027 marketing year were 394,000 tons, compared to 256,000 tons the previous week. 7. The latest monthly report from the International Grains Council (IGC) shows that global wheat production in 2026/27 is projected to decrease by 4 million tons year-on-year to 817 million tons, trade volume to decrease by 2 million tons to 203 million tons, and consumption to decrease by 2 million tons to 826 million tons; carryover stocks are expected to decrease by 4 million tons to 275 million tons. 8. The International Aluminium Institute (IAI) projects global primary aluminum production in July 2026 at 6.16 million tons, compared to 6.267 million tons in the same period last year, with the previous months figure revised to 5.939 million tons. The average daily primary aluminum production in July was 198,700 tons, with the previous months figure revised to 198,000 tons. Chinas primary aluminum production in July is projected to be 3.866 million tons, with the previous months figure revised to 3.727 million tons. 9. The US Climate Prediction Center (CPC) indicates that El Niño is strengthening, with a greater than 90% probability of a super event this fall and winter. 10. Data released by the U.S. Labor Department on Thursday showed that initial jobless claims fell by 6,000 to 206,000 in the week ending August 15. The median forecast from economists surveyed was 210,000. Meanwhile, continuing jobless claims rose to 1.8 million last week. 11. According to Xinhua News Agency, reporters learned from the Shanxi Provincial Bureau of Statistics on August 20 that Shanxi Provinces raw coal production from enterprises above designated size reached 68.933 million tons in July, and the cumulative raw coal production for the first seven months reached 680.287 million tons. 12. The U.S. Central Command confirmed that the aircraft carrier USS George Washington has been deployed to the Middle East, following the prolonged deployment of U.S. personnel aboard the USS Abraham Lincoln, which triggered a crisis. 13. EIA Natural Gas Report: For the week ending August 14, total U.S. natural gas inventories were 3,169 billion cubic feet, an increase of 16 billion cubic feet from the previous week and a decrease of 28 billion cubic feet from the same period last year, a year-on-year decrease of 0.9%, while being 185 billion cubic feet higher than the 5-year average, an increase of 6.2%.

WTI rebounded from $73.00, but a decline appears probable as negative US PMI spark recession fears

Daniel Rogers

Jan 05, 2023 14:41

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West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) have regained some ground in the Asian session after falling to near $73.00. Oil prices experienced a slaughter on Wednesday, which was precipitated by a consecutive dip in United States Manufacturing PMI data provided by the Institute of Supply Management (ISM) department.

 

The U.S. Manufacturing PMI dipped to 48.4 vs estimates of 48.5 and the previous publication of 49.0, marking the lowest figure since May 2000. The Federal Reserve's (Fed) aggressive policy tightening actions to combat persistent inflation have reduced the volume of manufacturing operations. To avoid increasing interest costs, companies are avoiding debt-raising negotiations, which has resulted in unaltered production capacities and diminished investment options.

 

In the meantime, the robust U.S. job market gives the Federal Reserve (Fed) a compelling justification to maintain higher interest rates for an extended period. The Unemployment Rate is extremely steady at lower levels, and pay growth is robust, which continues to keep inflationary pressures in check.

 

The American Petroleum Institute (API) stated that oil inventories grew by 3,298 million barrels for the week ending December 30. As people were preoccupied with New Year's celebrations, the majority of operational activity ceased. The official US oil inventory figures will provide fresh impetus moving forward.

 

In the Asian region, increased Covid infections in China are indicative of a delayed economic recovery. Analysts at Rabobank believe that China is still attempting to deal with the increase in Covid infections following the easing of restrictions. "The current increase of Covid infections is stressing the Chinese health care system in more ways than one. Bloomberg adds that this may also impede Beijing's aspirations to launch a homegrown semiconductor industry to compete with US-controlled supply chains.