2023-10-17 20:39

Copyrighted Image by: Reuters. Investing.com-- Oil prices rose sharply in Asian trade on Wednesday after a deadly blast at a Gaza hospital appeared to have stymied a U.S. diplomatic effort in the Israel-Hamas war, while industry data showed that U.S. inventories shrank more than expected last week. The White House said U.S. President Joe Biden will not visit Jordan as part of his Israel trip, after Jordan’s Foreign Minister Ayman Safadi said that a planned summit between U.S., Egyptian and Palestinian leaders will not take place. The trip was seen as an attempt to maintain support for Israel while also placating Arab states and preventing a bigger escalation in the conflict. The move came just a few hours after an explosion at a crowded hospital in Gaza City reportedly killed hundreds of Palestinians, which was blamed on both Israeli and Hamas forces. The blast drew ire from the international community, and dampened hopes for a swift deescalation in tensions in the Middle East. This in turn fueled renewed concerns that a spillover of the Israel-Hamas conflict could disrupt crude supplies in the oil-rich Middle East region- a notion that had boosted oil prices through the past week. The news helped oil prices reverse most losses seen earlier this week, with Brent futures now sitting comfortably above the key $90 a barrel level. Brent oil futures jumped 2.3% to $91.97 a barrel, while West Texas Intermediate crude futures surged 2.6% to $87.63 a barrel by 22:20 ET (02:20 GMT). Fears of an escalation in the Israel-Hamas war, particularly that other Middle Eastern countries could join the fray, had boosted oil prices over the past week, helping them shrug off headwinds from a stronger dollar and fears of higher interest rates. Stronger-than-expected third-quarter gross domestic product data from world no.1 oil importer China also offered some support to oil markets on Wednesday, as a string of monetary stimulus measures from Beijing appeared to be bearing fruit. Markets largely looked past reports that the U.S. was close to lifting sanctions on Venezuela, given that any supply unlocked from such a move appeared unlikely to help soothe tight global crude markets. US stockpiles seen shrinking more than expected- API In another sign of tight supplies, data from the American Petroleum Institute showed on late-Tuesday that U.S. inventories shrank 4.4 million barrels in the week to October 13, more than expectations for a draw of 1.3 million barrels. The draw comes after a bumper build in the prior week, which also saw U.S. production reach new peaks. But the API data indicated that U.S. exports had picked up again, while gasoline and distillates consumption remained steady. Robust retail sales and industrial production data also pointed to strength in the U.S. economy, likely indicating that fuel demand will remain strong amid tightening supplies. Focus is now on official inventory data, due later on Wednesday. Expectations of tighter global oil supplies, following deep production cuts by Saudi Arabia and Russia, underpinned oil prices earlier this year, and are also expected to keep crude supported in the coming months, despite increasing economic headwinds. More cues on the U.S. economy are due this week, most notably an address by Federal Reserve Chair Jerome Powell on Thursday. https://www.investing.com/news/commodities-news/oil-prices-rise-brent-above-91-as-israelhamas-tensions-worsen-3201403

2023-10-17 17:34

Copyrighted Image by: Reuters Bitcoin continues to trade above $28,000 on Tuesday, maintaining its position near a two-month high. The cryptocurrency's resilience is attributed to an unexpected 0.7% rise in U.S. retail sales for September. After a dip from Monday's peak of $30,000 to a low of $27,855.21 yesterday, the digital currency rebounded to over $28,600 today. This marks Bitcoin's highest rate since August 18, following a breakthrough past a pivotal resistance level of 63.00 on the Relative Strength Index (RSI) that peaked at 65.00. In contrast, Ethereum experienced a downturn after briefly reaching a high of $1,628.16. Misinformation regarding the approval of Blackrock (NYSE:BLK)'s spot Bitcoin ETF led to a drop in the cryptocurrency's value, landing at a low of $1,570.89 today. Following its failure to surpass an RSI ceiling of 49.00, Ethereum now appears to be targeting a lower level at $1,540, bringing an end to its four-day winning streak. https://www.investing.com/news/cryptocurrency-news/bitcoin-holds-firm-above-28000-amid-us-retail-sales-surge-93CH-3201363

2023-10-17 16:51

On Tuesday, Binance.US, a major cryptocurrency exchange, announced a revision in its terms of service, effectively banning direct U.S. dollar withdrawals. Users are now required to convert their dollars into stablecoins or other digital assets prior to withdrawal. This move follows the suspension of U.S. dollar deposits earlier this year in June, a decision made in response to the SEC's intensified scrutiny of the crypto sector. This regulatory pressure led to hesitation among Binance.US's banking partners, prompting them to distance themselves from further engagements within the crypto industry. Binance.US had previously warned its users about potential disruptions in dollar withdrawals, hinting at a complete halt by June 13. The SEC has initiated legal action against Binance.US, its parent company Binance, and CEO Changpeng Zhao for operating unregistered securities operations. This issue is expected to be a key discussion point at the upcoming Benzinga's Future of Digital Assets conference. In addition to these regulatory challenges, Binance.US has also been managing lawsuits related to its transactions. Last month, the company severed ties with its euro payments collaborator without announcing a successor, marking another setback for the exchange. The revised terms of service represent a significant departure from standard financial protections. Previously, Binance.US's U.S. dollar deposits were insured by the Federal Deposit Insurance Corporation (FDIC). Now, customers are obligated to convert their USD into stablecoins or other digital currencies before they can proceed with withdrawal. This change was communicated to customers via email as part of the exchange's comprehensive service reassessment. https://www.investing.com/news/cryptocurrency-news/binanceus-halts-direct-us-dollar-withdrawals-amid-regulatory-pressures-93CH-3201334

2023-10-17 16:44

Copyrighted Image by: Reuters. Investing.com - US crude stockpiles possibly fell as much as 4.4 million barrels last week, suggesting exports had picked up again after a slack in the previous week that led to a huge build, petroleum trade group API reported Tuesday. Declines were also seen in inventories of gasoline, the premier US fuel product and, distillates — a feedstock for diesel and heating fuel, the weekly inventory report from the API, or American Petroleum Institute, showed. Typically at this time of year, demand for fuels is softer in the United States as fewer families do trip roads with their children back in school or college. But with the refinery industry on seasonal maintenance, larger-than-usual declines in fuel stocks are also common with limited replenishments coming in. The U.S. crude inventory balance fell by 4.383M barrels during the week ended Oct. 13, according to the API. That contrasted with a 12.94M jump in the prior week to Oct. 6 led largely by a sharp decline in exports. Aside from that balance, the API also noted a 1.005M barrel decline at the Cushing, Oklahoma delivery point for U.S. crude, versus the previous week’s draw of 0.547M. Cushing storage levels have dropped drastically this year, prompting concerns they might reach such critical lows to complicate operations at the storage hub. On the fuel side, the petroleum trade group reported a gasoline inventory slide of 1.578M barrels and distillate stock drop of 0.612M barrels. In the prior week, gasoline saw a 3.645-M barrel build while distillates experienced a 3.535M drop. The API data serves as a precursor to official inventory data on the same due from the US Energy (NASDAQ:USEG) Information Administration, or EIA, on Wednesday. For last week, analysts tracked by Investing.com expect the EIA to report a crude stockpile drop of 1.4 million barrels, versus the 10.176M-barrel build reported during the week to Oct 6. On the gasoline inventory front, the consensus is for a draw of 1.0M barrels, in addition to the 1.313M-barrel decline in the previous week. Automotive fuel gasoline is the No. 1 U.S. fuel product. With distillate stockpiles, the expectation is for a drop of 1.0 million barrels, on top of the prior week’s deficit of 1.837M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships and fuel for jets. https://www.investing.com/news/commodities-news/us-crude-stocks-down-44m-barrels-adjusting-to-previous-huge-draw--api-3201330

2023-10-17 16:15

Federal Reserve Governor Michelle Bowman voiced concerns over the potential risks and tradeoffs of a U.S. central bank digital currency (CBDC) and stablecoins in a Harvard Law School event on Tuesday. Bowman underscored the consumer and banking system risks of stablecoins and digital assets, insisting that providers comply with banking regulations. She expressed skepticism about the introduction of a CBDC, citing possible disruptions to the banking system and serious consumer privacy concerns. Bowman argued that no convincing case has been made that a CBDC could better facilitate everyday payments or reduce payment system frictions than alternatives like FedNow or future innovations. FedNow, which is endorsed by Fed Chair Jerome Powell, aims to foster financial inclusion by providing same-day fund access and efficient cash flow management for consumers and small businesses. Despite ongoing assessments by the Federal Reserve on CBDC's potential benefits and drawbacks, congressional approval would be necessary for any launch. Bowman also warned about the risks associated with stablecoins, digital tokens that claim one-for-one dollar convertibility but are less secure, less stable, and less regulated than traditional forms of money. These digital assets pose substantial risks to consumers and the U.S. banking system. In her speech, Bowman emphasized the need for a clear regulatory framework for digital assets that mirrors successful U.S. banking practices. She insisted that activities posing similar risks should be governed by the same regulations, irrespective of product or provider, thereby ensuring strong consumer protection even outside the regulatory perimeter. This approach would help maintain the existing success of regulations while fostering responsible innovation advantageous to consumers. https://www.investing.com/news/cryptocurrency-news/federal-reserve-governor-warns-of-cbdc-and-stablecoin-risks-93CH-3201293

2023-10-17 15:09

In a significant policy shift, Binance US has removed Federal Deposit Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC) protection for cryptocurrency deposits. The change was communicated to users via email. The revised terms of service now require users to convert their U.S. dollars into digital assets such as stablecoins like USDT or USDC or other cryptocurrencies before withdrawal. This move diverges from Binance US's 2019 claim of providing FDIC insurance coverage up to $250,000 per account. It also contrasts sharply with the policy of competitor Coinbase (NASDAQ:COIN), which continues to maintain FDIC insurance up to $250,000, contingent on accurate customer information. The decision aligns with the FDIC's warning in its Annual Risk Review about the unique risks posed by cryptocurrencies and the lack of insurance for deposits with crypto-based service providers. As per the new policy, user accounts and digital assets, previously held in pooled custodial accounts, will no longer be FDIC-insured. The policy update emphasizes that digital assets lack legal tender status or government backing. This comes amid intensifying regulatory scrutiny from the Securities and Exchange Commission (SEC) and other challenges faced by Binance US. The platform has been criticized for limited compliance with a consent order linked to a lawsuit. Binance CEO Changpeng Zhao, also known as "CZ", has expressed discontent over these regulatory actions. Meanwhile, the SEC has condemned Binance.US for insufficient document production related to its operations. In a related development, Stephen Ehrlich, ex-CEO of Voyager Digital, faced charges from the Commodity Futures Trading Commission (CFTC) for falsely claiming FDIC insurance on customer accounts. This safety measure was originally established during the Great Depression to protect bank depositors. https://www.investing.com/news/cryptocurrency-news/binance-us-shifts-policy-removes-fdic-insurance-on-crypto-deposits-93CH-3201250