My investing muse - oil, Apple & Huawei

My investing muse - oil, Apple & Huawei

Oil and the OPEC+ impact

From Y Chart:

US Retail Gas Price is at a current level of 3.925, down from 3.931 last week and down from 3.938 one year ago. This is a change of -0.15% from last week and -0.33% from one year ago.The US Retail Gas Price is the average price that retail consumers pay per gallon, for all grades and formulations. Retail gas prices are important to view in regards to how the energy industry is performing. Additionally, retail gas prices can give a good overview of how much discretionary income consumers might have to spend.

Since Jan 2023, US retail gas prices are on an uptrend. This sounds like “inflation inbound”.

From the Crude oil price chart, we see a recent surge in oil prices as OPEC+ declared production cuts.

In the recent Reuters news, it was reported:

This week, OPEC member Saudi Arabia and Russia extended their voluntary supply cuts of a combined 1.3 million barrels per day to the end of the year.Data on Thursday showed overall Chinese exports and imports fell in August, as sagging overseas demand and weak consumer spending squeezed businesses.

With the above, there is a possibility of inflation creeping up following the crude oil production cuts. It starts with oil price going up. However, there are concerns about the China economy as a series of bankruptcies threaten the real estate market. Real estate accounts for one-third of China’s GDP and could be the reason causing recession for the world’s biggest factory. More impact on oil can have inflationary impacts. We are still awaiting news on the impact of extreme weather on the agriculture harvest and the energy grids. If the impact is significant, all these have some inflationary impact though it could be shortlived.

Huawei and Apple

The quiet launch of Huawei’s Mate 60 PRO phone is making huge waves in the USA. The USA was left puzzled on how Huawei was able to launch this phone with 5G capabilities despite the sanctions in place. As such, some of the US lawmakers are calling for more sanctions.

China announced an Apple’s iPhone ban for government employees. This has led to Apple losing $200B in 2 days. This could rippled to other sectors as Apple and Huawei were caught in the crossfire of trade sanctions.

As the whole world is staring at a potential recession, we need the 2 biggest countries to be working together. Yet, there are notable disputes and accusations raised.

With this week’s CPI, we should expect more volatility in the coming days. There is money to be made in both bull and bear runs. Let us continue to shortlist great companies that we can buy at discounts.

@TigerStars

$Apple(AAPL)$

$WTI Crude Oil - main 2310(CLmain)$