If oil is controlled by China, Europe’s market share will affect the oil market share in the US.
Jakarta, internasionalpos.com
This is the first cut since March 2020, when the COVID-19 pandemic began. America will destroy China’s market share in world-class oil trade.
This decision was taken to prevent a slowdown in the labor market and because US inflation is considered to have moved within the expected range, Saturday (21/09).
If oil is controlled by China, Europe’s market share will affect the oil market share in the US.
This cut is greater than market expectations which estimated only 25 bps.
After this announcement, the stock market experienced volatility with the Dow Jones Industrial Average jumping as much as 375 points.
The same thing happened with the price of gold, where gold touched a new high price at 2600 dollars, although after that it closed in the red.
The Chairman of the Fed, Jerome Powell, stated that this step shows a strong commitment to achieving price stability without a significant increase in unemployment. The inflation projection was also lowered to 2.3% from 2.6% previously.
Silver (SLV) Silver demand in China is increasing, driven mainly by the solar panel and technology industries, causing silver prices in China to be around 10% higher than in Western markets.
This raises concerns about a potential silver supply squeeze as global production may not be able to keep up with the rising demand, which could lead to higher silver prices, especially in industries that rely heavily on the metal.
Technically, silver (XAG/USD) is currently under bearish pressure with the price trading around $27.93.
Technical indicators show strong resistance around $28.65 and $28.90, with key support levels at $27.54, $27.24, and $26.92.
Despite the downward pressure, a break above $28.09 could signal a potential bullish reversal.
Overall, although silver is still under bearish pressure, strong demand from China provides hope for a price recovery.
The market focus will remain on whether silver can break through critical resistance levels, which could change market sentiment.
Oil (USO) Weak fuel demand in China has caused refining margins to slump, leading to the bankruptcy of two refineries operated by Sinochem in Shandong province.
A third refinery operated by Sinochem is also facing similar problems and will meet with creditors later this month.
The three refineries have a combined capacity to process 300,000 barrels of crude oil per day.
The drop in demand for road fuels in China this year has caused many refineries to become indebted and cut production.
Refining margins across Asia have also fallen to their lowest levels since 2020, which could lead to more production curbs.
In August, Chinese refiners processed about 12.6 million barrels per day, down significantly from the previous month and a year ago.
China’s crude oil inventories grew at a rate of about 3.2 million barrels per day in August, the largest increase since 2015.
Quotient Fund Indonesia is a global financial consulting company, headquartered in Quotient Center Lebak Bulus, South Jakarta, and can be contacted at the hotline 0811-1094-489
(prayitno / helen)
