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Market News Crude oil trading reminder: inventories unexpectedly increased, the White House tried its best to reduce oil prices, long and short efforts may still need to see the progress of the monkeypox virus
Crude oil trading reminder: inventories unexpectedly increased, the White House tried its best to reduce oil prices, long and short efforts may still need to see the progress of the monkeypox virus
During the Asian session on May 25, U.S. oil hovered around $110.50 per barrel. Although the American people ignored high oil prices and planned to drive on the Memorial Day weekend to boost demand, API data released in the morning showed that U.S. crude oil inventories were unexpectedly Increase; the White House considers exempting summer gasoline smog rules in order to cut oil prices, and U.S. stocks fell, increasing fears of a recession, limiting oil prices.
2022-05-25
10093
In Asian time on Wednesday (May 25), U.S. oil hovered around $110.60 a barrel. Although the American people ignored high oil prices and planned to drive on Memorial Day weekend to boost demand, API data released in the morning showed that the U.S. Crude oil inventories unexpectedly increased; the White House considered waiving summer gasoline smog rules to cut oil prices, and U.S. stocks fell, increasing recession fears and limiting oil price gains.
During the day, focus on the initial monthly rate of U.S. durable goods orders in April and EIA data; at 2:00 on Thursday, the Federal Reserve announced the minutes of its May monetary policy meeting.
[U.S. crude oil inventories unexpectedly increased by 567,000 barrels last week]
U.S. crude oil inventories unexpectedly rose last week, but refined oil inventories fell, data from the American Petroleum Institute (API) showed earlier in the morning. Crude inventories rose by 567,000 barrels in the week to May 20. Gasoline inventories plummeted by 4.2 million barrels, while distillate inventories fell by 949,000 barrels.
[White House considers exemption from summer gasoline smog rules]
The White House is considering waiving summer gasoline smog reduction rules, a move it hopes will stem rising prices, according to three sources involved in the discussions.
Refiners and blenders are prohibited from using lower-cost ingredients such as butane in summer gasoline, but the White House is considering a moratorium on the rule to help reduce fuel costs. These ingredients help raise the Reid vapor pressure (RVP) of gasoline, leading to more smog, especially during hot summer months.
The Biden administration has removed the requirement to sell E15 gasoline, a lower-priced high-ethanol gasoline, this summer. A waiver of RVP restrictions under consideration would apply to all grades of gasoline, the sources said, and no final decision has been made. The White House did not immediately respond to a request for comment. Outside groups have been lobbying the White House to issue waivers, especially state governors.
Biden has made controlling inflation and high oil prices his top priorities ahead of November's congressional elections. Republicans are trying to seize control of Congress and attacking Democrats on this issue, and the White House has adopted an "anything is open for discussion" attitude in order to curb the surge in oil prices.
[S&P 500 closes lower as poor economic data sparks recession fears]
U.S. stocks S&P 500 and Nasdaq closed lower on Tuesday, with the S&P 500 down 0.81% as investors fretted that aggressive moves to curb the highest inflation in decades could tip the U.S. economy into recession, dampening investor sentiment risk appetite.
All three major U.S. stock indexes recovered some of their losses in afternoon trading, with the Dow Jones Industrial Average closing higher. Even so, the S&P 500 is just 2.2 percentage points away from falling into a bear market since its record on Jan. 3.
Bill Northee, senior investment director at Bank of America Wealth Management, said, "We took a step back and recognized that the main market catalysts, really the Fed's shift in stance and interest rate adjustments, have impacted prices across capital markets over the past two weeks. We're seeing some degree of macroeconomic deterioration starting to show up in corporate earnings and economic data."
Much of the sell-off was driven by a profit warning issued by Snap Inc, which sent the company's shares tumbling 43.1%, sending losses spreading across the social media sector. The S&P 500 communications services index fell 3.7%.
The conflict between Russia and Ukraine, as well as virus containment measures, have exacerbated disruptions to global supply chains and pushed inflation to multi-decade highs. The Fed has vowed to aggressively address persistent price increases by raising borrowing costs, and market participants will be watching closely the minutes of the meeting, due on Wednesday, for clues on the pace and scale of those actions.
Investors are now pricing in a series of 50 basis-point rate hikes in the coming months, fueling fears that the Fed could push the economy into a recession that is increasingly factored into analysts' forecasts. middle.
"We will be watching the minutes of the Fed meeting for any signs that monetary policy may be more hawkish or dovish than stated at the last meeting," Northey said. Tuesday's data paints a picture of waning economic momentum, with U.S. new home sales A sharp drop and a slowdown in business activity.
[Saudi Foreign Minister Says No Immediate Shortages in Global Oil Markets Are Expected]
Saudi Arabia's Foreign Minister Faisal bin Farhan Al Saud said on Tuesday that Saudi Arabia did not expect an immediate shortage in the oil market, but only a certain degree of shortage of oil products, when asked why the kingdom rejected U.S. calls to increase output.
[The U.S. Department of Energy says it will sell up to 40.1 million barrels of crude oil from the Strategic Reserve]
The U.S. Department of Energy said on Tuesday it would sell up to 40.1 million barrels of crude from the U.S. Strategic Petroleum Reserve as part of a plan previously announced by the administration. The Energy Department said in a statement that the sale was part of a plan announced by U.S. President Joe Biden on March 31. Biden announced at the time that he would release crude oil from reserves in response to rising energy prices.
The U.S. Department of Energy said it would release no more than 39 million barrels of sour crude oil between July 1 and August 15, and another 1.1 million barrels of sweet crude from June 21-30.
[The total number of new home sales in the United States in April fell to the lowest level since the beginning of the epidemic]
The total number of new U.S. home sales fell by the most in nearly nine years in April, driven by a combination of high home prices and a steep rise in mortgage rates. Earlier data showed sales of new single-family homes fell 16.6% to 591,000 units in April, the lowest level since April 2020. The figure was lower than the 749,000 expected by economists. Rapidly rising U.S. mortgage rates, combined with record home prices, have made buying a home increasingly out of reach for many Americans. A separate report showed U.S. homebuilder confidence fell for five straight months and posted its biggest drop since the outbreak, as businesses faced higher material costs and slowing demand.
【131 cases of monkeypox have been confirmed worldwide】
On the 24th local time, Briand, Director of the Department of Infectious Disease Hazard and Prevention of the World Health Organization, said at the 75th World Health Assembly that since the first case of monkeypox was detected in the United Kingdom on May 7, there have been 19 countries around the world. 131 confirmed cases of monkeypox and 106 suspected cases were reported in China and regions.
Briand pointed out that this monkeypox outbreak is very unusual, with a large number of cases in many countries in a short period of time, but the epidemic is still controllable. There are still many unknowns and uncertainties, and it is unclear if these cases are just the tip of the iceberg or if the peak of transmission has passed. WHO recommends that countries strengthen monitoring of monkeypox outbreaks.
[Spain has confirmed 40 cases of monkeypox]
According to the data released by the World Health Organization on May 24, local time, 131 monkeypox cases and 106 suspected monkeypox cases have been reported worldwide. Spain is the country that reported the most confirmed cases of monkeypox. There were 40 confirmed cases of monkeypox, followed by Portugal with 37 confirmed cases of monkeypox. The Spanish Public Health Commission will analyze the monkeypox epidemic on the afternoon of the 24th local time, and is expected to study measures to curb the further spread of monkeypox infections.
[Americans ignore high gas prices and plan to drive on Memorial Day weekend]
U.S. Memorial Day weekend trips are expected to be the busiest in two years, as more U.S. drivers hit the road despite high fuel prices to escape the shackles of coronavirus lockdowns.
The start of the U.S. summer driving season may be a sign of consumers' tolerance for higher oil prices. In the first three months of the year, motorists drove a 5.6 percent increase in miles driven, while the price of a gallon of regular gasoline jumped 50 percent over the past year, with the national average costing more than $4.59 a gallon, according to the AAA.
"Americans don't seem to have reacted significantly to high oil prices," said Patrick De Haan, director of oil analysis at price-tracking firm GasBuddy, adding that the U.S. could see gasoline prices above $5 before long. Ten states and the District of Columbia have seen gas prices exceed $5, and the statewide average in California has soared to more than $6 a gallon. About 39 million people will drive 50 miles or more over Memorial Day weekend, up 8.3% from a year earlier and close to pre-pandemic mileage, according to AAA data.
[Russian Ministry of Foreign Affairs announced the addition of 154 British MPs to the sanctions list]
According to the latest report from the Russian TASS news agency on the 24th, the Russian Foreign Ministry released news that Russia has added 154 members of the British House of Lords to the sanctions list. According to reports, these people were banned from entering Russia.
[Public health experts say monkeypox is easier to deal with than the new crown]
Monkeypox is not the next coronavirus, public health experts say, and the world already has the tools it needs to contain the outbreak. Monkeypox may not trigger another pandemic, GAVI Alliance chief executive Seth Berkley said in an interview with Bloomberg Television at the World Economic Forum in Davos. World Health Organization officials also said on Tuesday that the disease can be controlled because the public knows the symptoms and can quickly identify them.
Although monkeypox has existed in developing countries for years, its rapid spread in Europe and the United States has raised concerns in recent days. However, the virus is not as transmissible as the new crown, and it is closely related to the smallpox virus, so humans already have vaccines and treatments. Human-to-human transmission of monkeypox virus is believed to be primarily through respiratory droplets, but it can also be transmitted through direct contact with bodily fluids.
Overall, despite the continued escalation of geopolitical tensions, the American people plan to drive on the Memorial Day weekend, boosting demand; but US stocks fell, US crude oil inventories increased, and the US took new measures to try to lower oil prices, monkeypox continued to spread in many countries. The spread, coupled with fears of an economic recession, may limit short-term gains in oil prices. Pay attention to the uncertain risks of the geopolitical situation and the spread of epidemics and various viruses.
At 7:07 GMT+8, U.S. crude oil is now at $110.52 per barrel.
During the day, focus on the initial monthly rate of U.S. durable goods orders in April and EIA data; at 2:00 on Thursday, the Federal Reserve announced the minutes of its May monetary policy meeting.
Negative factors affecting oil prices
[U.S. crude oil inventories unexpectedly increased by 567,000 barrels last week]
U.S. crude oil inventories unexpectedly rose last week, but refined oil inventories fell, data from the American Petroleum Institute (API) showed earlier in the morning. Crude inventories rose by 567,000 barrels in the week to May 20. Gasoline inventories plummeted by 4.2 million barrels, while distillate inventories fell by 949,000 barrels.
[White House considers exemption from summer gasoline smog rules]
The White House is considering waiving summer gasoline smog reduction rules, a move it hopes will stem rising prices, according to three sources involved in the discussions.
Refiners and blenders are prohibited from using lower-cost ingredients such as butane in summer gasoline, but the White House is considering a moratorium on the rule to help reduce fuel costs. These ingredients help raise the Reid vapor pressure (RVP) of gasoline, leading to more smog, especially during hot summer months.
The Biden administration has removed the requirement to sell E15 gasoline, a lower-priced high-ethanol gasoline, this summer. A waiver of RVP restrictions under consideration would apply to all grades of gasoline, the sources said, and no final decision has been made. The White House did not immediately respond to a request for comment. Outside groups have been lobbying the White House to issue waivers, especially state governors.
Biden has made controlling inflation and high oil prices his top priorities ahead of November's congressional elections. Republicans are trying to seize control of Congress and attacking Democrats on this issue, and the White House has adopted an "anything is open for discussion" attitude in order to curb the surge in oil prices.
[S&P 500 closes lower as poor economic data sparks recession fears]
U.S. stocks S&P 500 and Nasdaq closed lower on Tuesday, with the S&P 500 down 0.81% as investors fretted that aggressive moves to curb the highest inflation in decades could tip the U.S. economy into recession, dampening investor sentiment risk appetite.
All three major U.S. stock indexes recovered some of their losses in afternoon trading, with the Dow Jones Industrial Average closing higher. Even so, the S&P 500 is just 2.2 percentage points away from falling into a bear market since its record on Jan. 3.
Bill Northee, senior investment director at Bank of America Wealth Management, said, "We took a step back and recognized that the main market catalysts, really the Fed's shift in stance and interest rate adjustments, have impacted prices across capital markets over the past two weeks. We're seeing some degree of macroeconomic deterioration starting to show up in corporate earnings and economic data."
Much of the sell-off was driven by a profit warning issued by Snap Inc, which sent the company's shares tumbling 43.1%, sending losses spreading across the social media sector. The S&P 500 communications services index fell 3.7%.
The conflict between Russia and Ukraine, as well as virus containment measures, have exacerbated disruptions to global supply chains and pushed inflation to multi-decade highs. The Fed has vowed to aggressively address persistent price increases by raising borrowing costs, and market participants will be watching closely the minutes of the meeting, due on Wednesday, for clues on the pace and scale of those actions.
Investors are now pricing in a series of 50 basis-point rate hikes in the coming months, fueling fears that the Fed could push the economy into a recession that is increasingly factored into analysts' forecasts. middle.
"We will be watching the minutes of the Fed meeting for any signs that monetary policy may be more hawkish or dovish than stated at the last meeting," Northey said. Tuesday's data paints a picture of waning economic momentum, with U.S. new home sales A sharp drop and a slowdown in business activity.
[Saudi Foreign Minister Says No Immediate Shortages in Global Oil Markets Are Expected]
Saudi Arabia's Foreign Minister Faisal bin Farhan Al Saud said on Tuesday that Saudi Arabia did not expect an immediate shortage in the oil market, but only a certain degree of shortage of oil products, when asked why the kingdom rejected U.S. calls to increase output.
[The U.S. Department of Energy says it will sell up to 40.1 million barrels of crude oil from the Strategic Reserve]
The U.S. Department of Energy said on Tuesday it would sell up to 40.1 million barrels of crude from the U.S. Strategic Petroleum Reserve as part of a plan previously announced by the administration. The Energy Department said in a statement that the sale was part of a plan announced by U.S. President Joe Biden on March 31. Biden announced at the time that he would release crude oil from reserves in response to rising energy prices.
The U.S. Department of Energy said it would release no more than 39 million barrels of sour crude oil between July 1 and August 15, and another 1.1 million barrels of sweet crude from June 21-30.
[The total number of new home sales in the United States in April fell to the lowest level since the beginning of the epidemic]
The total number of new U.S. home sales fell by the most in nearly nine years in April, driven by a combination of high home prices and a steep rise in mortgage rates. Earlier data showed sales of new single-family homes fell 16.6% to 591,000 units in April, the lowest level since April 2020. The figure was lower than the 749,000 expected by economists. Rapidly rising U.S. mortgage rates, combined with record home prices, have made buying a home increasingly out of reach for many Americans. A separate report showed U.S. homebuilder confidence fell for five straight months and posted its biggest drop since the outbreak, as businesses faced higher material costs and slowing demand.
【131 cases of monkeypox have been confirmed worldwide】
On the 24th local time, Briand, Director of the Department of Infectious Disease Hazard and Prevention of the World Health Organization, said at the 75th World Health Assembly that since the first case of monkeypox was detected in the United Kingdom on May 7, there have been 19 countries around the world. 131 confirmed cases of monkeypox and 106 suspected cases were reported in China and regions.
Briand pointed out that this monkeypox outbreak is very unusual, with a large number of cases in many countries in a short period of time, but the epidemic is still controllable. There are still many unknowns and uncertainties, and it is unclear if these cases are just the tip of the iceberg or if the peak of transmission has passed. WHO recommends that countries strengthen monitoring of monkeypox outbreaks.
[Spain has confirmed 40 cases of monkeypox]
According to the data released by the World Health Organization on May 24, local time, 131 monkeypox cases and 106 suspected monkeypox cases have been reported worldwide. Spain is the country that reported the most confirmed cases of monkeypox. There were 40 confirmed cases of monkeypox, followed by Portugal with 37 confirmed cases of monkeypox. The Spanish Public Health Commission will analyze the monkeypox epidemic on the afternoon of the 24th local time, and is expected to study measures to curb the further spread of monkeypox infections.
Bullish factors affecting oil prices
[Americans ignore high gas prices and plan to drive on Memorial Day weekend]
U.S. Memorial Day weekend trips are expected to be the busiest in two years, as more U.S. drivers hit the road despite high fuel prices to escape the shackles of coronavirus lockdowns.
The start of the U.S. summer driving season may be a sign of consumers' tolerance for higher oil prices. In the first three months of the year, motorists drove a 5.6 percent increase in miles driven, while the price of a gallon of regular gasoline jumped 50 percent over the past year, with the national average costing more than $4.59 a gallon, according to the AAA.
"Americans don't seem to have reacted significantly to high oil prices," said Patrick De Haan, director of oil analysis at price-tracking firm GasBuddy, adding that the U.S. could see gasoline prices above $5 before long. Ten states and the District of Columbia have seen gas prices exceed $5, and the statewide average in California has soared to more than $6 a gallon. About 39 million people will drive 50 miles or more over Memorial Day weekend, up 8.3% from a year earlier and close to pre-pandemic mileage, according to AAA data.
[Russian Ministry of Foreign Affairs announced the addition of 154 British MPs to the sanctions list]
According to the latest report from the Russian TASS news agency on the 24th, the Russian Foreign Ministry released news that Russia has added 154 members of the British House of Lords to the sanctions list. According to reports, these people were banned from entering Russia.
[Public health experts say monkeypox is easier to deal with than the new crown]
Monkeypox is not the next coronavirus, public health experts say, and the world already has the tools it needs to contain the outbreak. Monkeypox may not trigger another pandemic, GAVI Alliance chief executive Seth Berkley said in an interview with Bloomberg Television at the World Economic Forum in Davos. World Health Organization officials also said on Tuesday that the disease can be controlled because the public knows the symptoms and can quickly identify them.
Although monkeypox has existed in developing countries for years, its rapid spread in Europe and the United States has raised concerns in recent days. However, the virus is not as transmissible as the new crown, and it is closely related to the smallpox virus, so humans already have vaccines and treatments. Human-to-human transmission of monkeypox virus is believed to be primarily through respiratory droplets, but it can also be transmitted through direct contact with bodily fluids.
Overall, despite the continued escalation of geopolitical tensions, the American people plan to drive on the Memorial Day weekend, boosting demand; but US stocks fell, US crude oil inventories increased, and the US took new measures to try to lower oil prices, monkeypox continued to spread in many countries. The spread, coupled with fears of an economic recession, may limit short-term gains in oil prices. Pay attention to the uncertain risks of the geopolitical situation and the spread of epidemics and various viruses.
At 7:07 GMT+8, U.S. crude oil is now at $110.52 per barrel.
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