In today’s briefing:
- [ETP 2024/33] Oil Lost Gains to Demand Concerns and Unexpected Build in US Inventories
- Steven NS Cheung’s Idea of RMB Peg with Commodities in Preparation for More RMB Internationalisation
[ETP 2024/33] Oil Lost Gains to Demand Concerns and Unexpected Build in US Inventories
- For the week ending 09/Aug, US crude inventories increased by 1.4 mb for the first time in seven weeks, contrary to analyst expectations of a 1.9 mb drawdown.
- US natural gas inventories fell by 6 Bcf, its first decline since 04/Apr. However, storage levels are up 6.8% YoY and 13% above the 5-year seasonal average.
- Wells Fargo, UBS, and BMO Capital reduced their target prices on Occidental. BMO Capital lowered its targets on Chevron and Halliburton but raised its target on Exxon Mobil.
Steven NS Cheung’s Idea of RMB Peg with Commodities in Preparation for More RMB Internationalisation
- While the RMB’s share in international trade has been gradually increasing over the years due to efforts to internationalize the currency, it accounts for only 2-3% of global trade settlement.
- RMB is the fourth most actively traded currency, behind the US dollar, euro, and British pound but ahead of the Japanese yen in global payment rankings.
- We believe further internationalisation of RMB hinges on its monetary system, which has to be reformed to avoid the instability involved in opening up the capital account.
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