• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
According to the Philippine Institute of Volcanology and Seismology, a 5.3-magnitude earthquake occurred in the eastern waters of Davao Oriental Province in the southern Philippines at around 21:59 on March 1, with a focal depth of 10 kilometers. The earthquake was felt in many nearby areas. The earthquake is not expected to cause damage, but there will be aftershocks.On March 1, the official website of Ant Group was updated to show that Han Xinyi, the former president of Ant Group, officially took over as CEO of Ant Group.On March 1, data from FlightAware, a flight tracking website, showed that a Ukrainian government plane had taken off from a military base near Washington and flew to the UK. According to Ukrainian media reports, the plane was used by Ukrainian President Zelensky. It is reported that British Prime Minister Starmer proposed to hold a meeting in London on March 2 to discuss how to deal with the "breakdown" of the meeting between Trump and Zelensky on the 28th. More than a dozen European countries and EU leaders, as well as Zelensky, will attend the meeting.The National Highway Traffic Safety Administration (NHTSA) said Volkswagen of America is recalling 60,490 vehicles.March 1, local time on February 28, French President Emmanuel Macron said during his visit to Portugal that there was little hope of making progress on the tariff issue after meeting with US President Trump. Macron also said that if the United States decides to impose a 25% tariff on Europe, Europe will respond "equally". Macron said that although the imposition of reciprocal tariffs will lead to inflation and no country will benefit from it, the EU must protect itself.

WTI supply worries are in the spotlight prior to the US CPI

Alina Haynes

Oct 13, 2022 14:38

 163.png

 

West Texas Intermediate (WTI) has been in the red on Wednesday, losing roughly 1.8% at Wall Street's closing bell. Following last week's two-million-barrel-per-day reduction in production plans, OPEC reduced its demand forecasts for this year and the following year by two million barrels per day. WTI traded between $86.30 and $90.05 prior to the time of writing, when it was trading at 87.03.

 

Oil prices are a major topic this week in relation to Thursday's release of the US Consumer Price Index, where core prices have likely remained robust in September, with the series reporting another substantial 0.5% MoM increase. "Shelter inflation likely remained elevated, but we anticipate a dramatic decline in the price of old automobiles. Importantly, gas prices likely provided additional respite for the headline figure, falling approximately 5% month-over-month. Our MoM predictions imply 8.2%/6.6% YoY growth for total and core prices," TD Securities analysts explained. The statistics will likely strengthen the Federal Reserve's resolve to slow the economy through higher interest rates and heighten recession worries, both of which have been bearish for oil.

 

OPEC slashed its 2022 demand prediction by 0.5 million barrels per day in its authoritative Monthly Oil Market Report, citing "the extension of China's zero-COVID-19 limitations in certain locations and economic concerns in OECD Europe." Despite resistance from the Biden Administration, OPEC+ reduced its production plans last week in an effort to prop rising oil prices.

 

TD Securities analysts stated, "The OPEC+ group's effective 1.1m bpd cut will tighten physical balances, providing a positive impetus for both spot prices and timespreads and so encouraging greater involvement." "This is setting the stage for a big price increase as US SPR releases come to a halt and Russian production begins to decline at a quicker rate. The return of shipments from Kazakhstan provides a partial offset, but reports indicate that oil industry strikes in Iran have moved to a large crude refinery in the southwest, adding to supply uncertainties. The right tail of oil prices remains robust.

 

"In the meantime, a pipeline rupture has halted an estimated 200k bpd of flow from the Northern Druzhba pipeline, aggravating the near-term tightening of balances. This leaves traders focused on the demand side of the equation; a really harsh landing might still derail the rebound in energy prices, but the recession that most analysts anticipate will likely result in a slowing, but not a drop, in oil demand growth. This might worsen the tightness of energy markets at a time when Chinese mobility is strengthening, as evidenced by our monitoring of road traffic conditions in the 15 cities with the highest vehicle registrations.