- Oil prices remain under pressure after losing more than $3/Bbl yesterday
- Feb ’23 WTI lost nearly $2 this morning to trade around $75/Bbl
- The USD Index (DXY – a proxy for U.S. Dollar strength against a basket of six international currencies) weakened on Wednesday after posting big gains in the previous session
- A weaker dollar (DXY Index) can cause foreign buyers of dollar-denominated commodities to pay more for the same amount of goods
- Concerns about surging Covid cases in China and whether the country can sustain the eased restrictions persist (Reuters)
- EU members are considering potential travel restrictions against travelers entering from China
- Many Chinese funeral houses and hospitals say they are overwhelmed, and international health experts anticipate at least 1 million deaths in China this year
- China has reported five more Covid related deaths today, bringing the total to over 5000. However, unreliable data and transparency raise questions
- China hikes refined product export quotas for the first batch of 2023 (BBG)
- The government has issued 18.99 million tonnes (151 MMBbl) of quotas, up 46% from the 13 million tonnes allotted a year earlier, to cover mostly gasoline, diesel, and jet fuel exports, according to consultancies JLC and Longzhong
- However, this move could indicate that domestic demand is expected to be weakened
- This move might help reduce the impact of potential reductions in Russian diesel exports when EU sanctions go into effect in February
- IMF's Managing Director warns that 2023 will be a more difficult year for the global economy (Reuters)
- 2023 is going to be a tough year for a large portion of the global economy as the key drivers of growth - the U.S., EU, and China - all see weaker activity, Kristalina Georgieva, managing director of the IMF, said on Sunday
- The IMF cut its forecast for global economic growth in 2023 in October, taking into account the ongoing drag from the Ukraine conflict as well as inflationary pressures and central banks' interest rates hikes
- Chevron to receive the first cargo of crude from Venezuela to the U.S. in four years
- Two oil tankers are being sent to Venezuela by Chevron, one of which is expected to load a cargo of Venezuelan crude for delivery into the U.S.
- The second tanker is loaded with diluents that will be sent to a Chevron oil joint venture located in Venezuela