BOC WILL BE CONSDIERING FURTHER RATE CUTS

BOC DOESN'T SEE A RECESSION, RATHER SLOW GROWTH

BOC SAYS WEAKER CAD DRIVEN BY USD STRENGTH

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

BOC CUTS RATE 50BPS TO 3.25%, SEES GRADUAL APPROACH FROM HERE

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Disappointing China Fiscal Outlook Weighs On Crude, Iran Still Market Focus

OIL
EM BulletCommoditiesEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Oil prices have fallen today after rallying close to 4% on Monday driven by concern over a possible Israeli attack on Iranian oil infrastructure. Today commodities weakened as comments from China’s NDRC disappointed as they were short on details, although it will quicken fiscal spending. WTI is down 1.6% to $75.93/bbl, off the intraday low of $75.36, while Brent is back below $80 at $79.71/bbl (-1.5%) after a low of $79.18. The USD index is down slightly.

  • The situation in the Middle East could easily reverse today’s losses though. There were no signs of a reduction in fighting yesterday with rocket attacks on Israel from Iran-backed Hamas, Hizbullah and Yemen’s Houthis, while Israel struck southern Lebanon and Gaza.
  • Markets are concerned that following Iran’s attack on Israel last week, that the OPEC member will become more involved in the conflict thus risking supplies. A third of global oil output comes from the Middle East.
  • Later the Fed’s Kugler, Bostic and Collins and ECB’s de Guindos, Schnabel and McCaul speak. In terms of data, US August trade and German August IP print. There is also industry-based US oil inventory data.
188 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Oil prices have fallen today after rallying close to 4% on Monday driven by concern over a possible Israeli attack on Iranian oil infrastructure. Today commodities weakened as comments from China’s NDRC disappointed as they were short on details, although it will quicken fiscal spending. WTI is down 1.6% to $75.93/bbl, off the intraday low of $75.36, while Brent is back below $80 at $79.71/bbl (-1.5%) after a low of $79.18. The USD index is down slightly.

  • The situation in the Middle East could easily reverse today’s losses though. There were no signs of a reduction in fighting yesterday with rocket attacks on Israel from Iran-backed Hamas, Hizbullah and Yemen’s Houthis, while Israel struck southern Lebanon and Gaza.
  • Markets are concerned that following Iran’s attack on Israel last week, that the OPEC member will become more involved in the conflict thus risking supplies. A third of global oil output comes from the Middle East.
  • Later the Fed’s Kugler, Bostic and Collins and ECB’s de Guindos, Schnabel and McCaul speak. In terms of data, US August trade and German August IP print. There is also industry-based US oil inventory data.