- Oil picks up after a three-day decline as China's central bank addresses economic concerns
- September ’23 WTI gained 86c this morning to trade around $80.24/Bbl
- China commits to economic support and domestic demand boost, with Premier Li Qiang underscoring annual goals without detailing stimulus plans
- Amid recovery concerns, China's push for state banks to step up currency intervention weighs on demand
- Additionally, minutes from the US Fed’s July meeting, released Wednesday, indicated no clear sign of halting rate hikes as officials prioritize fighting inflation
- Citi urges betting against oil amid anticipated weak demand and supply surge (Bloomberg)
- Citigroup recommends shorting oil in the coming winter through 2024, expecting stronger supply and softer demand, in an Aug 17 note to clients
- The bank added that production is emerging from Russia, Iran, Iraq, Libya, Nigeria, and Venezuela, while expectations of Chinese demand growth might be overblown and economic slowdowns loom in Europe and the US
- However, the bank noted risks, including potential supply disruptions from hurricanes in the Gulf of Mexico due to El Nino and OPEC+ cuts
- China's vows to bolster economy amidst economic woes (Bloomberg)
- China's top leaders commit to expanding domestic consumption and supporting the private sector but refrain from detailing specific new stimulus measures amid economic challenges
- Premier Li Qiang emphasized confidence in reaching yearly economic goals and urged efforts to stimulate domestic demand while also focusing on preventing major risks and deepening state-run sector reforms
- Current economic challenges include weak consumer spending, declining investments, and the ripple effects of a property market slump