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On September 10, Lu Lei, Vice Governor of the Peoples Bank of China, introduced at a press conference held by the State Council Information Office on the theme of "Starting the 15th Five-Year Plan" that overseas entities currently hold more than 11 trillion yuan of RMB financial assets in China, and central banks or monetary authorities of more than 80 countries and regions have included RMB in their foreign exchange reserves; Panda bonds have been issued for more than 1.3 trillion yuan, with issuers covering 26 countries and regions across five continents.Enterprise Singapore: For the week ending September 9, Singapores light distillate fuel oil inventories increased by 1.196 million barrels to 11.874 million barrels, a one-month high; middle distillate fuel oil inventories increased by 326,000 barrels to 8.237 million barrels, a two-week high; and fuel oil inventories decreased by 98,000 barrels to 20.355 million barrels, a two-week low.On September 10, Li Bin, Deputy Director and Spokesperson of the State Administration of Foreign Exchange, introduced at a press conference held by the State Council Information Office on the theme of "Starting the 15th Five-Year Plan" that my countrys direct investment has achieved basic convertibility, and cross-border securities investment has formed a cross-border investment system mainly based on institutional investor system, interconnection mechanism, and direct market access for overseas investors. Macro-prudential management is implemented across the board for cross-border financing.On September 10th, at a press conference held by the State Council Information Office, Cong Lin, Deputy Director of the State Financial Regulatory Commission, stated that the Commission will guide financial institutions to adapt to the needs of consumption upgrading, support the expansion of commodity consumption, and continuously unleash the potential of service consumption and new types of consumption. The Commission will adhere to a close integration of investment in goods and investment in people, strengthen financial support for key areas of the "two major projects," "two new projects," "six networks," and the 109 major projects of the "15th Five-Year Plan," and strive to promote stable foreign trade, supporting the export of intermediate goods, the construction of overseas warehouses, and the development of cross-border e-commerce.On September 10th, at a press conference held by the State Council Information Office, Li Bin, spokesperson and deputy director of the State Administration of Foreign Exchange, stated that during the 15th Five-Year Plan period, my countrys foreign trade exports and imports will develop in a more coordinated manner, outward investment and inward investment will further expand, and the balance of payments is expected to remain basically balanced. In the future, the State Administration of Foreign Exchange will better coordinate development and security, continuously promote the facilitation of cross-border trade and investment to enhance the momentum of foreign-related economic development, and promote a steady increase in the scale and continuous optimization of the balance of payments. It will also continuously improve macro-prudential management, strengthen the monitoring and early warning of cross-border capital flows, continuously enhance the vitality and resilience of the foreign exchange market, and prudently respond to external shock risks.

WTI struggles to prolong its two-day uptrend below $78, as negative sentiment undermines expectations for China-led oil demand

Daniel Rogers

Mar 02, 2023 15:46

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Following a two-day uptrend that reached the greatest levels in a fortnight, the price of WTI crude oil fluctuates between $77.80 and $90 early Thursday.

 

The recent struggles of the black gold may be related to the contradictory signals encircling China and the Oil equities. However, negative sentiment and the resurgence of the US Dollar appear to be the quote's greatest obstacles to the upside.

 

In addition, higher-than-anticipated US inventories weigh on the energy benchmark. The weekly data from the US Energy Information Administration (EIA) indicates a 1.165M increase in Oil inventories, compared to the expected 0.45M increase and the previous level of 7.648M.

 

The willingness of US President Joseph Biden to continue pumping the markets with the Strategic Petroleum Reserve (SPR) and the absence of offers for Russian Oil also exert downward pressure on the price of WTI crude oil.

 

The latest New York Times (NYT) headlines suggest a potential rift between the United States and China at the important event. According to the news, "China is urging the start of peace talks, and some Group of 20 nations may support that notion when they meet in India, but U.S. officials contend Russia would not negotiate in good faith."

 

It should be noted, however, that the recent uptick in China activity data and optimistic remarks from the dragon nation's policymakers keep black gold purchasers optimistic. China's Minister of Human Resources recently stated, "China's employment will continue to increase this year and remains stable overall." On Wednesday, China's Finance Minister Liu He expressed a willingness to increase the country's fiscal expenditure while noting that the foundation of China's economic recovery remains fragile.

 

However, hawkish remarks from policymakers of the US Federal Reserve (Fed), the Bank of England (BoE), and the European Central Bank (ECB) highlighted the need for additional rate hikes to combat inflation issues, which exerted downward pressure on the price of oil.

 

In response to these events, 10-year US Treasury bond yields surpassed 4% for the first time since early November 2022, while 2-year yields ascended to their highest levels since June 2007 by flashing 4.91%. The increase in US Treasury bond yields reflects the market's concerns, which in turn have impacted on bulls on Wall Street, S&P 500 Futures, and WTI bulls recently. Consequently, S&P 500 Futures were down 0.5 percent as of press time despite the varied closing of Wall Street benchmarks.

 

Moving on, G20 updates could be combined with comments from central bankers and secondary US data to amuse Oil traders.