According to the Wall Street Journal: JP Morgan had bags of material stored in a warehouse in the Netherlands that was supposed to contain nickel but turned out to be full of rock. The London Metal Exchange announced last week that sacks believed to hold 54 tonnes of nickel in an undisclosed warehouse did not meet their standards.
The G7 countries will probably not revise the Russian oil price ceiling this week. The G7 was supposed to review the price ceiling in the middle of this month. The price cap will not be revised this week, Reuters cited two unnamed EU officials and one coalition official as saying: The European Commission told EU ambassadors over the weekend that there was no enthusiasm among The G7 is not there to discuss the impending oil price cap.
European Central Bank member Holzmann calls for 3 more interest rate hikes. He told the German newspaper Handelsblatt two weeks ago that the European Central Bank should raise interest rates by 0.50% at each of its next four meetings because inflation is stubborn. Holzmann was asked in an interview on Austria’s national broadcaster ORF on Monday whether he would stick to the request given the recent turmoil in the banking sector, he said: “I’m not ruling them out, but I’m also not saying they necessarily do either.” They will be.
The Bank of New Zealand sees no immediate need to request the reinstatement of the USD swap line (expiring in 2023). The bank continues to closely monitor financial market developments.
The United States is considering ways to guarantee all bank deposits. US bank deposits are about $18 trillion. The FDIC insurance fund is about $125 billion. US officials are considering ways to temporarily expand the Federal Deposit Insurance Corporation. Covering all deposits is a measure sought by a coalition of banks, which they argue is necessary to prevent a potential financial crisis.
Trafigura, a French commodities trader based in Singapore, predicts strengthening oil demand. Commodity traders, including Citadel and Trafigura, believe the recent turmoil in the banking sector is likely to be limited in duration and do little damage to the economy. This keeps the demand for crude oil on an upward trajectory. Trafigura predicts an increase in Chinese demand. “We are seeing record buying volumes for certain grades of crude oil,” the group’s chief economist said of China. Russian crude oil flows by sea fell last week, although on a larger scale, there were few signs of a slowdown in volumes. Russia warned last month that March volumes would fall by 500,000 bpd as it clearly understands the impact of ongoing sanctions on crude and refined products.