Oil Prices Decline In Choppy Trade On China Concerns

Oil prices fell in choppy trade on Wednesday as fears of a global recession and concerns about rising COVID-19 cases in China, the world’s top oil importer, took center stage.

The downside remained capped amid news that Russia aims to ban oil sales from Feb. 1 to countries that abide by a G7 price cap imposed on Dec. 5.

Benchmark Brent crude futures dropped 0.3 percent to $84.42 a barrel and WTI crude futures were down half a percent at $79.14, as industry group American Petroleum Institute reports data on U.S. crude inventories later in the day.

Media reports suggest that Chinese hospitals and funeral homes are overwhelmed due to a surge in COVID-19 infections as the country moves away from its hardline zero-COVID policy.

There is uncertainty over the true scale of infections in China due to lack of reliable official figures.

China has stopped publishing daily COVID data, but media reports now suggest that the country will eventually publish data on COVID-19 cases once a month when the disease comes under Category B management.

China’s reopening buoyed the outlook for oil, but analysts say that it is difficult for demand to recover in a short time as the virus spreads largely unchecked across the country of 1.4 billion people.

After China announced the re-opening of borders in a major shift of its epidemic response policies, several countries have announced safety measures like testing and medical scrutiny of passengers, coming from China and other countries where the virus is prevalent.

Nightclub stabbing arrests as two detained after Cody Fisher’s death

Two men have been arrested on suspicion of the murder of footballer Cody Fisher who was stabbed to death at a Birmingham nightclub on Boxing Day, West Midlands Police said. The men are aged 21 and 22, according to the force.

More to follow…

Gold Declines As Yields Climb On Fed Policy Uncertainty

Gold prices fell notably on Wednesday as the dollar rose broadly, boosted by a jump in Treasury yields.

Spot gold fell 0.7 percent to $1,801.51 per ounce, while WTI crude futures were down 0.70 percent at $1,809.75.

The dollar touched a one-week high against the yen as the Bank of Japan Summary of Opinions from the December meeting showed that the decision to widen the trading band of 10-year Japanese government bond yield is not aimed to change the direction of monetary easing.

The widening of yield band is not a step toward an exit from monetary easing and the current accommodative policy stance should be maintained through JGB purchases, the summary showed.

Treasury yields rose as investors tried to gauge how high the Federal Reserve will need to raise rates in its continuing battle against inflation while also trying to avoid tilting the economy into recession.

The U.S. economic calendar remains light today, with a report on pending home sales likely to attract some attention in the New York session.

Data on weekly jobless claims and Chicago-area business activity may attract attention in the coming days.

Pre-market Movers: KALA, LJAQ, MNPR, DFFN, EDRY…

The following are some of the stocks making big moves in Wednesday’s pre-market trading (as of 06.40 A.M. ET).

In the Green

Kala Pharmaceuticals, Inc. (KALA) is up over 35% at $5.31
Monopar Therapeutics Inc. (MNPR) is up over 24% at $2.78
Diffusion Pharmaceuticals Inc. (DFFN) is up over 23% at $6.77
Dollar Tree, Inc. (DLTR) is up over 5% at $150.52
SOS Limited (SOS) is up over 5% at $2.93
Hyliion Holdings Corp. (HYLN) is up over 5% at $2.32

In the Red

LightJump Acquisition Corporation (LJAQ) is down over 25% at $14.18
EuroDry Ltd. (EDRY) is down over 17% at $14.18
FREYR Battery (FREY) is down over 4% at $8.00

US, Israeli National Security Advisors Discuss Iran’s Weapons Supply To Russia

U.S. National Security Advisor Jake Sullivan and Israeli National Security Advisor Dr. Eyal Hulata convened a virtual meeting of the U.S.-Israel Strategic Consultative Group (SCG) on Thursday.

Senior representatives from foreign policy, defense, and intelligence agencies also participated in the meeting, according to the White House.

Officials reviewed significant regional developments since the last SCG meeting, including the current situation with respect to Iran. They further discussed Iran’s growing military relationship with Russia, including the transfer of weapons the Kremlin is deploying against Ukraine, targeting its civilian infrastructure, and Russia’s provision of military technology to Iran in return.

Officials expressed commitment to countering Iran’s threats to the region, and to ensuring that Iran can never acquire a nuclear weapon.

They also discussed the broad array of economic sanctions imposed in recent months against Iran, reviewed ongoing cooperation and exercises between the U.S. military and Israel Defense Forces, and assessed means for enhancing Israel’s security and economic integration throughout the Middle East region.

Erayak Power Solution HY Generator Sales Surges; Stock Up

Erayak Power Solution Group Inc. (RAYA) reported that its sales of generators were US$3.65 million in the first half of 2022, a 437% increase from the first half of 2021. The increase in generator sales was due to the continuous impact of the Russia-Ukraine situation this year, resulting in an unprecedented energy crisis that has significantly increased demand for the Company’s generators.

In Wednesday pre-market trade, RAYA was trading at $2.90 up $0.35 or 13.72%.

Generator sales in the second half of 2021 were US$720 thousand and the generator sales in the second half of 2022 are expected to continue similar growth rate as seen in the first half of 2022.