Market Information Wednesday 13 December 2023

West Texas Intermediate (WTI) experienced a decline of up to 4.3%, falling below $69 per barrel, marking its lowest point since late June. The persistent decrease extends over seven consecutive weeks, despite OPEC and its allies implementing new production cuts, failing to arrest the downward trend. The ongoing pressure on prices is caused by emerging indications that crude supplies remain abundant. Russia’s seaborne crude exports registered their highest weekly average since early July, while a U.S. government agency revised its oil output estimate for the year upward by 30,000 barrels per day compared to last month’s projection. The spreads between monthly contracts persist in reflecting an oversupply scenario. The front end of the Brent futures curve closed this week at its lowest level since June, emphasizing the challenges posed by surplus oil in the market.

Consumer prices in the United States rose in November as expected, according to data from the U.S. Department of Labor released on Tuesday. Consumer prices increased by 3.1% on a year-on-year basis last month, compared to 3.2% in the previous month. Economists had anticipated an inflation rate of 3.1%. The core inflation, which adjusts for food and energy prices, remained at 4.0% on a year-on-year basis both in November and October, in line with expectations. On a monthly basis, consumer prices rose by 0.1%, and core prices increased by 0.3%. This compares to 0.0% and 0.2% in October.

The German ZEW Economic Sentiment Index increased further in December, as indicated by data from the German research institute. The ZEW Expectations Index rose from 9.8 in November to 12.8 this month, surpassing the market’s expectation of an index of 8.0. Additionally, the index for the current situation improved from minus 79.8 in November to minus 77.1 in December.The 6M Euribor increased with 2 basis points to 3.96% compared to previous business day. The 10Y Swap decreased with 4 basis points to 2.71% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.