A new negative week on Wall Street and oil rises by 5% in a week

Concerns about supply shortages led Brent oil prices to rise nearly 4%
while West Texas Intermediate crude prices rose by about 5% this week

Evest follows market developments in the following report

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Oil jumps in extreme volatility

Weekly oil performance

A new declining week on Wall Street indices

Oil jumps in extreme volatility

US oil rose 1.87% to the US $110.32 per barrel
In the meantime, Brent crude rose by 2.11% to the US $75.55 per barrel
Concerns about supply shortages led Brent oil prices to rise nearly 4%
while West Texas Intermediate crude prices rose by about 5% for the entire week

According to experts, oil price volatility is likely to continue as traders assess the impact of China’s shutdown on oil sanctions

The EU previously proposed an embargo on Russian crude oil and refined products by the end of 2022
The proposal also includes an embargo on all transport, brokering, insurance and financing services provided by the European Union’s Russian oil transport companies

According to Reuters

if the 27 countries in the bloc agree to the EU sanctions proposal
the market will fall into serious shortages and drive energy commodity prices higher

While supplies are limited, the Organization of the Petroleum Exporting Countries and its allies
(OPEC+) agreed to increase oil production by 432 thousand barrels per day in June at their May 5 meeting
However, this increase will not be sufficient to offset the shortage of Russia’s supplies
especially when the group still produces less than its share of about 1.5 million barrels per day

This week, the number of US oil platforms rose by 5 to 557 – the highest level since April 2020
Investors also expected higher demand from the United States as Washington announced
plans to buy 60 million barrels of crude to replenish its emergency inventory
However, signs of global economic weakness supporting demand concerns will limit gains in oil prices

During the week’s session, Brent oil was priced at US $112.4 per barrel
while West Texas Intermediate crude was priced at US $109.8 per barrel
Over the entire week, the price of Brent oil rose by about 4%
and the price of West Texas Intermediate crude rose by about 5%

Experts said that concerns about the likelihood of lower demand coupled with the possibility of interest
rate hikes by the US Federal Reserve, at the beginning of the trading week
led to a further decline in the crude oil commodities Brent
and West Texas by US $2 under market information that the European Commission
(EC) could “exempt” Hungary and Slovakia from the Russian oil embargo

In the meantime

the European Commission is preparing to finalize the next package of sanctions against Russia

However, oil prices quickly reversed course, gradually stabilizing against concerns that supply
could be restricted by the European Union’s (EU) embargo on Russian crude
But China’s protracted COVID-19 embargo actions have led to oil prices falling by more than 2%
The price of Brent oil fell to US $105 per barrel and West Texas Intermediate to US $102.41 per barrel

There are real concerns about whether Chinese demand, a huge driver of global demand
will continue to increase sharply until 2022

According to analysts, price volatility is likely to persist as traders weigh the impact of China’s
closure on Western oil sanctions and oil sanctions

artical name A new negative week on Wall Street

Weekly oil performance

In the May 4 trading session, the price of “oil” rose to more than US $5
when the EU proposed a plan to phase out the import of Russian oil
The price of Brent crude futures exceeded $110 per barrel
and WTI was close to $107.81 per barrel

Concern over supply shortages continued to maintain the price of oil
prompting the price of this commodity to rise sharply in the last trading sessions of the week

According to experts

the oil market is still not fully priced in the face of possible European Union sanctions on Russian oil
so crude oil prices will be higher in the coming months

Despite calls from Western countries for further increases in production
the Organization of the Petroleum Exporting Countries and its allies
(OPEC +) are “continuing” in their plan to increase target production
in June to 432 thousand barrels per day during the May 5 meeting

Investors also expect US demand to rise this fall when Washington announced plans to buy 60 million barrels of crude to replenish its emergency inventory
However, signs of global economic weakness supporting demand concerns will limit gains in oil prices

artical name A new negative week on Wall Street

A new declining week on Wall Street indices

It was another downward week for US stocks as major indices suffered weekly declines following the Federal Reserve’s decision to raise the interest rate by 0.50% to 1%, the highest level since 2000

The all-stock index (NYSE) lost 0.31% for the week, marking the sixth week of successive decline
Trading opened at 15,615.25 basis points and closed the week at 15,566.56 basis points
Although the week began bullish for the New York Stock Exchange in the first three days
the market’s declines on Thursday and Friday were enough to reverse three days of gains

The Nasdaq recorded its fifth week of decline, losing 1.54% during the week under consideration
It started at 12,331.69 basis points and ended the week at 12,144.66
The week in question saw a 17.63% decline in volume from the previous week
with the market registering a trading volume of 897.83 million

The Dow Jones and Standard & Poor’s indices also posted a decline of 0.23% and 0.21%, respectively
Dow Jones is in its sixth week of decline while Standard & Poor’s is in its fifth week of market decline

artical name A new negative week on Wall Street

A new negative week on Wall Street

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