Oil loses for the second day in a row .. The situation in Asia is disparate

Oil loses for the second day in a row .. The situation in Asia is disparate: Oil resumed the losses that it started in the first trading sessions this week when it was affected by disappointing Chinese data,
demonstrating that the path to economic recovery and increased oil demand will not be that fast and easy.

Oil lost much of last week’s gains, rising to record highs, the highest in more than two years.

The market is still preoccupied with the Iran-US talks, and what will result from them.

On the other hand, trading was mixed on the Asian exchanges,
which Evest will show you in detail in the following report:

Oil continues losses

Oil prices continued their losses today, Tuesday, as the latest economic
data showed that China’s oil imports fell in May, raising concerns about the fragile state of recovery in global oil demand.

Reuters

According to Reuters, Brent crude fell 49 cents, or 0.7%, to $71.00 a barrel at 0643 GMT, having fallen 0.6% overnight.

Meanwhile, U.S. oil prices fell 44 cents, or 0.6%, to $68.79 a barrel, after falling 0.6% in the previous session.

China

China’s oil imports are at their lowest level in five months,
confirming the weakness of Asian markets.

China’s imports of crude oil fell by 14.6% in May, from their highest levels a year earlier,
with daily imports reaching their lowest level this year,
as refinery maintenance limited demand for oil purchases.

Crude oil prices have risen in recent weeks, with Brent up nearly 40% this year and West Texas Intermediate
crude rising even further, amid expectations of a return to demand,
with several countries successfully vaccinating residents against Covid-19.

Supply restrictions by the Organization of the Petroleum Exporting
Countries (OPEC) and its allies (OPEC+) also helped boost prices.

But major oil importers like India are in the midst of a wave of contagion that continues to threaten the increase in global demand expected in the second half of the year.

According to analysts

According to analysts: “Crude oil prices are starting to suffer as demand in Europe and India faces a constraint.”

The recovery of raw materials from the health crisis has stalled several times this year,
but prices have been able to recover again as aggregate global demand continues to improve.

The return of COVID-19 to Asia and parts of Latin America states that the increase will be uneven.

Market participants are also following news of talks between Iran and the world powers to renew the nuclear agreement,
which is likely to lift U.S. sanctions and increase Iran’s oil production.

According to Bloomberg, the discussions are reaching a crucial stage.

Some analysts say Iran’s chances of a rapid return to oil markets are waning,
as talks on the country’s nuclear program continue to slow and it is expected that no progress will be made before August.

Nikkei loss and Topix gain

The Tokyo Stock Exchange closed very mixedly on Tuesday,
as did Wall Street the day before, and faced many uncertainties,
including the level of US inflation in May, expected later this week.

The leading Nikkei index lost 0.19% to 28963.56 points,
but the expanded Topix index closed more or less stable (+ 0.09% to 1962.65 points).

Investors chose a wait-and-see attitude ahead of Thursday’s release of the US May Consumer Price Index and the Same-day monetary policy meeting of the European Central Bank (ECB), ahead of the US Federal Reserve minutes next week.

According to France-Press

It is difficult for investors to be active in trade due to various factors of uncertainty”, including the health situation evolving in Japan a month and a half before the scheduled opening of the Tokyo Olympics.

According to data published Tuesday, Japan’s GDP fell in the first quarter of 2021, less than in the first estimate (-1% over a quarter versus -1.3% initially), affected by the country’s health crisis.

In Hong Kong, the Hang Seng index was in the red zone (-0.28% after 06:35 GMT), as was the composite index of Shanghai and Shenzhen at the end of the session.

A sharp rise for a Japanese pharmaceutical company

Pharmaceutical group Eisai’s share rose 19.35% to 9,251 yen, quickly hitting the maximum allowed price during the session.

Eisai is the partner of American Biogen, a new Alzheimer’s disease drug licensed Monday by the U.S. drug agency FDA.

It’s the first treatment for this neurodegenerative disease approved in the United States in nearly 20 years.

The approval of Aduhelm, which is supposed to slow the fall due to the disease,
came as a surprise as an advisory panel of experts voted against it last November,
considering that the evidence of its effectiveness was not strong enough.

Biogen shares

Biogen shares rose by 38% on Wall Street on Monday.

On the other hand, investors are watching the United States inflation data and the European Central Bank
meeting scheduled for Thursday, while Chinese producers are expected to rise in prices tomorrow.

Data on industrial production for April was disappointing in Germany,
with economists expecting it to grow by 0.4% and fall by 1% instead.

At 11 am the final Eurozone GDP figure for the first quarter will be released.

Oil loses for the second day in a row

Oil loses for the second day in a row .. The situation in Asia is disparate

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