Taiwan Invests in Alaska Gas Project; Trump Again Speaks of Falling Oil Prices

Source link: Taiwan Invests in Alaska Gas Project; Trump Again Speaks of Falling Oil Prices At a glance: Trump said Taiwan will buy 30% of the gas from the Alaska LNG pipeline project and invest about $4.4 billion in it. He again predicted that oil prices would fall soon and that the war with Iran would end very quickly. Brent crude closed near $106 on Tuesday; traders […] Website: Safir Arjan

At a glance, Trump said that Taiwan will buy 30% of the gas of the Alaska LNG pipeline project, and about 4.4 billion Chinese producer inflation reached 5%; Fastest rise in more than four years at a glance China's producer price index rose 5 percent in September from a year earlier; Biggest rise from ECB President Lagarde: ECB can't wait to fully see inflation secondary effects Lagarde at a Glance: Eurozone inflation driven mainly, but not exclusively, by rising energy prices. Lagarde says AMD or Applied Materials; Which stock is more attractive to invest in artificial intelligence? The boom in artificial intelligence has created great opportunities for the semiconductor industry; But all the companies in this chain grew from a path of American dividends as concerns about aggressive interest rate hikes by the Federal Reserve decreased. American stocks returned from the daily bottom after concerns about aggressive interest rate hikes by the Federal Reserve decreased and the trend continued. Morgan Stanley increased its Brent oil price forecast to $105 per barrel. Get informed about the news.

US President Donald Trump said Taiwan has agreed to buy 30 percent of the gas from the Alaska LNG pipeline project and invest about $4.4 billion in it. He once again predicted that the price of oil will drop soon and the war with Iran will end "very soon"; But the oil market is still cautious about these promises.

At a campaign rally in Alaska, Trump said that all the necessary permits for this project have been issued and two agreements are to be announced. Taiwan's pledge comes on top of South Korea's $50 billion investment pledge, boosting support from Asian buyers for a long-planned plan to export Alaskan gas to Asian markets.

Trump also said that with the end of the war, the price of energy will decrease drastically and Iran will not be allowed to get nuclear weapons. He claimed that now more oil is transported through the Strait of Hormuz than before the start of the conflict.

However, markets may evaluate these statements with caution. During the conflict, Trump has repeatedly said that the war will end soon and the price of oil will decrease; But these predictions have not been realized so far. Brent oil closed close to $106 per barrel on Tuesday. At the same time, the conflict has expanded and the Yemeni Houthis have increased their missile and drone attacks on Saudi Arabia. There have also been reports of massive explosions near the headquarters of Aramco in Dhahran.

Trump's claim about the Strait of Hormuz is also more optimistic than some external assessments. Morgan Stanley recently announced that Persian Gulf crude oil exports have returned to a level within 10% of the pre-war levels; A significant recovery, however, has not yet reached pre-war levels.

The Alaska Accords are more important in the long run. Attracting major buyers and investment from Taiwan and South Korea will strengthen the commercial backing of a project that is supposed to bring Alaskan gas to Asian markets and reduce these countries' dependence on supply routes from the Persian Gulf. However, the construction of pipelines and export facilities on this scale will take years and will not help the current bottleneck in the LNG market.

The market's reaction to Trump's frequent predictions about falling oil prices has also been muted. A sign of traders' assessment can be seen in futures contracts: West Texas Intermediate and Brent crude oil futures for 2027 have hit record highs in recent days; The issue that indicates the pricing of the possibility of continued supply restrictions is not a quick resolution of the crisis.

For oil traders, the main criterion is whether the conflict with Iran is moving towards a concrete solution or not. An authentic ceasefire can lead to a sharp drop in oil prices, and the risk of political news works in both directions; But until concrete steps are taken, the market is likely to take the risk of further supply disruption more seriously than the promise of a quick end to the war.

Image caption: A pipeline in snowy Alaska has been transformed into a sparkling seaway that carries LNG carriers across the Pacific Ocean.