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Market news: Early users of Anthropic Mythos retain access despite the U.S. governments restrictions.Abu Dhabi National Oil Company: Crude oil can be supplied through loading schedules starting April 27.June 19th - Investinglive analyst Eamonn Sheridan stated that market movements, including those of oil and the US dollar, shifted due to the cancellation of Vances trip, revealing previous market expectations: the early setbacks caused by Israel have led the market to reassess the process. The 60-day countdown to the nuclear negotiations following the Memorandum of Understanding has begun, but the first meeting is still unscheduled, a worrying situation for a process that cannot tolerate procedural delays. If the Geneva talks fail to convene in time, the risk premium flowing out of crude oil after the reopening of the Strait of Hormuz will face partial reconstruction. The current situation is clear: neither side will travel to Switzerland—at least not yet—and the significant differences in their respective reasons indicate that the root of the friction goes far beyond the logistical issues mentioned by the White House.June 19th - Data shows that foreign exchange traders, including hedge funds, are buying options in large quantities, betting on a further strengthening of the US dollar following hawkish signals from the Federal Reserve this week, which reinforced expectations of a US interest rate hike. According to traders, leveraged funds began buying dollar call options on Wednesday, with these options appreciating in value if the dollar strengthens. This demand continued into Thursday as investors digested new Federal Reserve Chairman Warshs anti-inflationary remarks. Tobias Jungmann, head of FX options for the Americas at Bank of America, said, "Were seeing massive buying of dollar call options, primarily in G-10 currencies. Given the current low implied volatility, establishing long dollar positions through options looks very attractive." James Swindell, senior FX options trader at Barclays in London, said, "Were seeing significant demand across the board for dollar call options, particularly in EUR/USD and GBP/USD."Bank of Japan Deputy Governor Ryozo Himino: When guiding monetary policy, the Bank of Japan must also pay attention to the financial situation, such as the lending attitude of banks.

Weak Demand Concerns Limit Oil Gains, But Oil Still Climbs

Aria Thomas

May 13, 2022 09:54

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Oil prices rose in early trading on Friday, but were on track for their first weekly decline in three weeks as fears about inflation and China's COVID lockdowns, which are stifling global growth, overshadowed worries about Russia's diminishing fuel supply.


At 00:08 GMT, Brent crude prices rose 97 cents, or 0.9%, to $108.42 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose $1.00, or 0.9%, to $107.13 per barrel.


Both benchmark futures were expected to tumble for the week, with Brent falling more than 3 percent and WTI falling more than 2 percent.


The market continues to be pushed and pulled by the possibility of a European Union ban on Russian oil reducing supply and worries about demand being hampered by sluggish global growth, inflation, and China's COVID restrictions.


Vivek Dhar, a commodities analyst at Commonwealth Bank, remarked, "Demand-related concerns have escalated substantially."


Inflation and aggressive rate hikes have pushed the U.S. currency to 20-year highs, which has restrained advances in oil prices because the strong dollar makes oil more expensive for buyers holding foreign currencies.


Analysts continue to focus, though, on the possibility of a European Union ban on Russian oil, after Moscow levied penalties this week on European units of state-owned Gazprom (MCX:GAZPROM) and Ukraine halted a gas transit route.


Stephen Innes, managing partner of SPI Asset Management, stated, "As Russia takes another step toward weaponizing energy, supply concerns are bolstering oil prices."


According to a report published by the International Energy Agency on Thursday, growing oil output in the Middle East and the United States, as well as a slowdown in demand growth, are likely to "offset an acute supply deficit amid a deepening Russian supply disruption."


The agency predicted that Russia's oil production will decline by over 3 million barrels per day (bpd) from July, or roughly three times more than is already displaced, if sanctions for its involvement in the crisis in Ukraine are expanded or if they discourage additional buying.

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