WTI price fell 3.4% on Thursday as OPEC+ opted to proceed with the oil supply hike

　　

July 1st, 2022

US stock markets fell on Thursday as the S&P 500 capped its worst first half of the year in more than 50 years. The Dow Jones Industrial Average slid 0.8% and the tech-heavy Nasdaq Composite dropped 1.3%. And the S&P 500 was down 0.9% at the end of the day. Now, the market seems to be forced to adjust back to reality after the unprecedented pandemic and unprecedented monetary policy.

US natural gas future contract plummeted 16%, the worst performance in more than three years. The plunge came after an inventory report showed a larger–than–expected storage build, thus the market rose the concerned over an oversupplied market.

Cryptocurrency exchange FTX is closing a deal to buy struggling cryptocurrency lender BlockFi for $25 million in a fire sale, well below BlockFi’s last valuation. The deal came after FTX provided a $250 million emergency credit to BlockFi. The fallout for BlockFi, a crypto lending company, happened following the major sell-off and the major plunge of crypto assets. Funds have struggled with liquidity issues as counterparties fail to maintain and meet margin calls.

Main Pairs Movement

WTI price plunged 3.44% on Thursday following the news that OPEC+ decided to stick with the planned oil production hike. The Middle East will increase monthly production to 648,000 barrels per day in August with the original plan.

AUD/USD edged 0.40% higher and closed with 0.69013. The Australian dollar out- weighted against the greenback following the concerns that a more aggressive move by major central banks might pose challenges to global economic growth.

EUR/USD advanced 0.43% and finished at 1.04836 at the end of the day. The advance came as Fed Chairman Jerome Powell clarified that the more significant mistake would be to fail to restore price stability.

Gold remained bearish, dropping 0.58%, to $1,807 on Thursday. During the ECB forum, Jerome Powell mentioned that the US economy is well-positioned while imposing more tightening policies in response to inflation. The factor has held back the bets on gold, deteriorating the demand for the precious metal, gold.

Economic Data for Today

Currency	Data	Time (GMT + 8)	Forecast
HKD	Public Holiday	All Day	–
CAD	Canada Day	All Day	–
JPY	Tankan Large Manufacturers Index (Q2)	07:50	13
CNY	Caixin Manufacturing PMI (Jun)	09:45	50.1
EUR	German Manufacturing PMI (Jun)	15:55	52
GBP	Manufacturing PMI (Jun)	16:30	53.4
EUR	CPI (Jun)	17:00	8.4%
USD	ISM Manufacturing PMI (Jun)	22:00	54.9

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