Kaohoon Morning Brief – 15 October 2021

1) Goldman Sachs expects oil price to remain high

Goldman Sachs warned that oil price could stay at a high level in the years to come on a rebounding demand and tightening supply. A record high of coal price is also an indicator to support this theory. Russian President Vladimir Putin also said that oil prices could well reach $100 per barrel.

 

2) Bank of England says fast-growing crypto market could spark financial crisis

Linking the rate of growth of the crypto-asset market to the 2008 subprime crisis, the Bank of England’s deputy governor warned that cryptocurrencies could spark another global financial crisis unless regulators step in for tougher regulations.

“When something in the financial system is growing very fast, and growing in a largely unregulated space, financial stability authorities have to sit up and take notice,” said BOE’s deputy governor Jon Cunliffe.

 

3) U.S. crude stockpile increases in a surprise gain

U.S. crude stocks rose by 6 million barrels, a surprise gain from an anticipation of 702,000 barrels by analysts. Production also edged higher to 11.4 million barrels per day.

Brent crude rose 0.7% to close at $83.76 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) rose to $80.96 per barrel.

 

4) U.S. weekly jobless claims hit pre-pandemic low

The U.S. Labor Department reported 293,000 jobless claims last week, beating the expectation of 319,000 claims by economists. The figure was the lowest since Covid-19 pandemic outbreak in early 2020 and reflected higher demand for workers for the reopening.