Oil is trying to beat the falling Surge.. and the Japanese Stock Exchange erases all previous session losses

Oil is trying to beat the falling Surge.. and the Japanese Stock Exchange erases all previous session losses:

Today, oil is trying to rise after a decline in US inventories, according to the American Petroleum Institute,
but is awaiting official data today from the Energy Information Administration.

Evest follows the latest trading developments in the stock and oil market in the following report.

After four consecutive loss sessions.. Oil rises slightly

The price of Brent crude futures on the London Stock Exchange for ICE Futures rose by $0.23,
or 0.33 percent, to $69.26 per barrel since the start of today’s session, Wednesday.

West Texas Intermediate crude futures on the New York Mercantile Exchange (NYMEX) rose $0.25, or 0.38 percent, to $66.83 per barrel.

Brent fell $0.48, or 0.7 percent, and West Texas Intermediate crude fell $0.7 or 1 percent, on Tuesday.

According to Dow Jones market data, Brent crude at the end of Tuesday’s trading session was the lowest since July 19,
and West Texas Intermediate crude was the lowest since August 9.

The price of West Texas Intermediate crude has fallen by nearly 4% in the last four trading sessions, according to Bloomberg.

The last prolonged period of continuous decline in the prices of this type of oil was recorded in March.

Oil prices managed to rally after four days of weakness as investors remained concerned about the outlook for fuel demand
after continued restrictions on the use of rail, air and other modes of transport amid rising Covid-19 cases worldwide.

the American Petroleum Institute (API)

On the other hand, data from the American Petroleum Institute (API), released yesterday Tuesday,
showed that U.S. commercial oil inventories declined 1.2 million barrels last week.

The API calculates inventory figures on the basis of data voluntarily submitted by refineries, oil storage facilities and pipeline operators.

The U.S. Department of Energy will release official inventory data later today, Wednesday.

Analysts surveyed by Standard & Poor’s Global Platts estimate that these inventories fell by 3.1 million barrels last week.

The state of the reserves considered more reliable is taken into account which will be published by the US Energy Information Agency (EIA) on Wednesday.

As the final weeks of the summer travel season begin, analysts expect US crude inventories to fall by 1.4 million barrels
and $2 million for gasoline as the final weeks of the summer travel season begin.

“The market continues to try to assess the impact of Covid-19 and the spread of the Delta variable on global oil demand,” said Andrew Lipow of the Commodity Research Group. “Everything is about China,” the analyst added. The market continues to be affected by Chinese data arriving every day slightly weaker than expected. “

China

China is the second-largest oil consumer in the world after the United States.

According to another analyst: “When results are depressing in the world’s second-largest economy,
investors take them into account.” “Between OPEC, which increases its production monthly as planned and expectations of weak demand,
we are seeing a change in price expectations,” Lippo added.

The market appears concerned about demand.

the Organization of Petroleum Exporting Countries (OPEC)

The market began to shift to supply expectations during the next meeting of the Organization of Petroleum Exporting Countries (OPEC)
and its allies via the OPEC + agreement scheduled for September 1.

According to OANDA analyst: “As oil markets become nervous, crude oil inventory data can become more important than usual,
especially if inventories rise sharply.”

In the short term, the oil market may be volatile and tending to weaken as crude oil prices begin to struggle
with demand in Europe and India faces resistance.

India, the world’s third-largest importer of crude oil, began selling oil to state-run refineries via the Strategic Petroleum Reserve (SPR),
implementing a new federal storage marketing policy by leasing space.

On the other hand, the strong US dollar also depressed commodity prices,
making the prices of precious metals and gold as “fragile” as oil, ANZ Research reported in a note quoted by Reuters.

Crude oil is usually priced in U.S. dollars, so a strong dollar may make oil more expensive for other currencies and ultimately hurt demand.

In the United States, more supply is set to enter the market if official estimates prove correct.

US shale oil production is expected to rise to 8.1 million barrels per day in September, the highest level since April 2020,
according to the Energy Information Administration’s monthly drilling production report.

Positive results on Japanese and Chinese exchanges

The Tokyo Stock Exchange erased early morning losses to close higher on Wednesday,
for the first time in five sessions, as the market absorbed the extended state of emergency announced the day before part of Japan.

The main Nikkei index rose by 0.59 per =cent to 27585.91 points and the expanded Topix index rose by 0.44 per =cent to 1923.97 points.

“It’s a technical recovery,” said Masahiro Ichikawa from Sumitomo Mitsui DS Asset Management.

He added: “There are expectations that, thanks to an officially extended emergency, the spread of virus infections may be reduced.”

The Japanese government, which has been criticized for its handling of the coronavirus pandemic,
on Tuesday extended the current state of emergency in part of the country until mid-September,
lasting 13 out of 47 departments in the country.

The daily cases of Kufid-19, which are increasing in the country,
first surpassed the 20000 mark nationally last weekend and quadrupled in three weeks in Tokyo.

The vaccination campaign in Japan, which began very late, is still behind those in other industrialized countries,
where only 38% of Japanese have been fully vaccinated so far.

According to figures also published Wednesday morning, Japan again saw a strong increase in its exports in the course
of one year in July (+ 37%) compared to the 2020 coronavirus pandemic,
but the pace of growth shows signs of slowing as the delta variant begins to affect global demand.

Chinese stock markets also rose: Hong Kong’s Hang Seng index rose 0.47% at the end of the session,
and the Shanghai and Shenzhen indexes closed higher.

Oil is trying to beat the falling Surge.. and the Japanese Stock Exchange erases all previous session losses

Oil is trying to beat the falling Surge.. and the Japanese Stock Exchange erases all previous session losses

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