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S&P: Frances final composite PMI rose slightly to 47.6 in January, marking another mild decline in private sector economic activity in France, marking the fifth consecutive month of contraction in output.S&P: Frances final service PMI for January fell further below 50.0, with overall data showing a slightly faster decline in business activity across the French service economy. Weak customer demand and political uncertainty were factors that affected output in January.Frances final services PMI for January was 48.2, in line with expectations of 48.9 and the previous value of 48.9.Frances final composite PMI for January was 47.6, in line with expectations of 48.3 and previous value of 48.3.February 5th, Italys January services PMI, released on Wednesday, fell slightly to 50.4 from 50.7 in December, showing that Italys services sector grew slightly in January, but the underlying demand conditions remained weak and employment levels fell. New business fell for the third consecutive month, from 49.1 to 49.0, while the employment index fell from 51.3 in December to 49.0, falling back to negative values for the first time since October last year. HCOB economist Jonas Feldhusen said: "Activity in Italys services sector remains in the growth range, but the magnitude is not large. Potential demand remains weak and has deteriorated again." Overall, Italys private sector activity continued to shrink slightly, with the composite PMI at 49.7, the same as in December last year, and below the 50 mark for the third consecutive month.

WTI struggles at $87 as recession worries probe OPEC's forecast and supply deficit fears intensify

Daniel Rogers

Sep 14, 2022 11:42

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After reverting from the weekly high, WTI crude oil traders seek clear direction around $87.50 during Wednesday's Asian session. However, the present hesitation in the price of black gold may be attributable to the mixed concerns regarding the demand-supply matrix.

 

The Organization of the Petroleum Exporting Countries (OPEC) indicated in a monthly report that oil consumption will climb by 3,1 million barrels per day (bpd) in 2022 and by 2,7 million barrels per day (bpd) in 2023, which is unchanged from last month. Despite obstacles such as rising prices, the news also highlighted indications that major economies were performing better than projected.

 

The news that the United States intends to replenish its emergency oil reserves, as well as the German and European move to control Russian oil and gas prices, could also be favorable for energy prices. In addition, rumors that the Western oil deal with Iran is a long way off are bolstering fears of a supply bottleneck and should have helped energy bulls.

 

Tuesday's US inflation statistics revived concerns about the Federal Reserve's fast rate hike and exacerbated recession concerns. Also acting as downward drivers for WTI crude oil are expectations of economic slowdown due to China and Russia-related concerns.

 

In spite of this, the US Consumer Price Index (CPI) for August increased by 8.3% year-over-year, surpassing market expectations by 0.1%. However, the monthly data increased to 0.1%, exceeding the -0.1% projected and the 0.0% shown in previous assessments. The core CPI, or CPI excluding food and energy, likewise exceeded the 6.1% consensus and 5.9% prior to printing at 6.3% for the month in question.

 

It should be mentioned that the weekly prints of the American Petroleum Institute's (API) industry inventory report also contributed to the commodity's downfall. The API Weekly Crude Oil Stock climbed to 6,035 million during the week ending September 9, up from 3,645,000 the previous week.

 

In the future, the price of black gold may stay under pressure due to a stronger US dollar and economic troubles. Before today's official weekly inventory data from the U.S. Energy Information Administration, however, the supply crisis concerns could test the bears (EIA). Thursday's US Retail Sales for the month of August and Friday's preliminary reading of the September Michigan Consumer Sentiment Index will also warrant close attention.

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