Global Commodity Traders Predict Oil Prices in the Range of US$60-US$70 per Bare

Commodity traders Gunvor and Trafigura anticipate that oil prices will remain within the $60 to $70 per barrel range due to weak demand from China and sustained global oversupply. Concerns over weakening demand in major economies such as China and the United States have exerted downward pressure on oil prices, causing them to decline from over $90 per barrel earlier this year. The recent decision by OPEC and its allies to postpone oil production increases planned for October and November provided some respite to the market. However, commodity traders caution that this reprieve may be short-lived. Trafigura's global head of oil, Ben Luckock, anticipates a potential decline in oil prices to $60 in the near term. Torbjorn Tornqvist, co-founder and chairman of Gunvor, has stated that a fair price for oil is $70 per barrel. This is due to the fact that global oil production exceeds consumption, and this imbalance is expected to worsen in the coming years.

https://internasional.kontan.co.id/news/pedagang-komoditas-global-prediksi-harga-minyak-di-kisaran-us60-us70-per-barel
 

Seven&I Acquisition Bid From Circle K Owner

Canadian retailer Alimentation Couche-Tard has announced its intention to continue negotiations with Japanese retail giant Seven & I Holdings despite the rejection of its US$38.5 billion acquisition proposal. Couche-Tard, the owner of Circle-K, has stated that it is open to divestment if necessary in order to secure approval and create an attractive combination. The company expressed disappointment at Seven & I's refusal to engage in friendly discussions, given the potential benefits of such a merger. Couche-Tard is confident that continued collaborative discussions will ultimately result in a higher value for Seven & I shareholders. Previously, Seven & I had determined that Couche-Tard's proposal was not aligned with the interests of shareholders. This decision was based on concerns regarding antitrust challenges and the potential size of the combined entity, which would be the largest retail store operator.

https://internasional.kontan.co.id/news/tawaran-akuisisi-seven-i-dari-pemilik-circle-k
 

Sluggish Economy, Central Banks Press Interest

In response to the ongoing slowdown in economic growth, central banks around the world are reducing their benchmark interest rates. The Bank of Canada has recently reduced rates by 25 basis points, and it is anticipated that other central banks will follow suit. The European Central Bank (ECB) is scheduled to convene this week to deliberate on monetary policy, with analysts anticipating a 25-basis-point reduction. The ECB's decision is seen as a reaction to potential interest rate cuts by the US Federal Reserve. ECB officials have previously signalled their intention to cut rates a second time this year. Wage growth and services inflation in the eurozone are becoming important factors influencing central bank decisions. The Fed in the US is also gaining confidence due to stabilising inflation. Central banks are prioritising economic growth after assessing that inflation risks have diminished.

https://internasional.kontan.co.id/news/ekonomi-loyo-bank-sentral-tekan-bunga