Oil and gold rally and positive trading on Wall Street and Asia

2021-09-01T17:52:47
gold Oil positive trading Wall Street and Asia
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Oil and gold rally and positive trading on Wall Street and Asia

Oil and gold rally and positive trading on Wall Street and Asia: Today marks the beginning of a new trading month,
and it seems this month will be good on the commodity trading market, where oil and gold have risen.

Evest follows all developments in the markets, in the following report. 

Oil rises on the first day of September

Oil rallied on the first day of September, with traders already counting the hours until the OPEC + Wide Oil Alliance meeting,
which would lead to another increase in production, according to Bloomberg.

Brent crude, the international benchmark produced in the North Sea, rose by 0.84 percent to $72.23 per barrel.

US light crude oil West Texas Intermediate recorded a 0.91 percent increase in price to $69.12 per barrel.

The average price of oil types in the OPEC basket is $71.48 per barrel, an increase of 1.03 percent.

The US Louisiana Light Index rose 2.99% to $70.29 per barrel,
reflecting the widespread shutdown of refineries in the Gulf of Mexico due to Hurricane Ida.

Iran’s heavy oil index traded up 0.60% to $67.01 per barrel.

In August, West Texas Intermediate recorded its largest monthly decline this year, losing more than 7% of its value.

OPEC and its allies, including Russia, are expected to ratify a plan to add 400 thousand barrels per day to production in October,
hoping the market can absorb additional supply flows as demand recovers from the coronavirus pandemic.

Traders are also focusing on U.S. oil inventory data.

the American Petroleum Institute

According to the American Petroleum Institute,
inventories in the main hub of Cushing rose by more than 3 million barrels last week.

Gasoline inventories are also on the rise.

Traders are also awaiting a weekly report from the United States Department of Energy on the country’s commercial oil,
gasoline, and distillation inventories.

Analysts expect an average decline in oil reserves by 4.4 million barrels.

After enjoying a stable price hike in the first half of the year, oil prices have slowed over the past two months amid investor concerns about the spread of Delta,
the most contagious type of coronavirus.

At the same time, OPEC + is gradually restoring supplies,
which it cut last year with the onset of the epidemic.

Global stocks will continue to decline?

The Alliance predicts that global stocks will continue to decline this year even as cartel countries ease production restrictions.

OPEC + sources told Reuters that the meeting is likely to be a continuation of existing policies despite pressure from the United States to increase supplies.

Shortly before the meeting, the meeting of the OPEC + Ministerial Monitoring Committee will be held.

According to the experts, the decision to increase production, agreed last month, is expected to be reviewed because of the weakening of Delta,
which prevents many States from canceling closures and removing all previously imposed restrictive measures.”

In the United States, supplies and refining resumed in the Gulf of Mexico and Louisiana after work was shut down by Hurricane Ida over the weekend.

However, the tensest state of the coronavirus in many places has recently caused uncertainty.

There have been concerns that the rapid spread of the Delta variant could affect oil demand if severe restrictions were imposed on public life again.

As this does not seem to be the case in many countries at the present time,
producers are expected to continue on the right track.

Gold struggles to stabilize above $1800

The yellow metal is struggling to stabilize in a clear direction after struggling the previous day at $1800.

These moves may be triggered by mixed concerns about coronavirus conditions and central bank moves.

Gold tracks moderately positive market morale, and a weak dollar supports the rally from the lowest level during the day near the US $1810 early on Wednesday.

While recent figures from Australia and New Zealand appear to be not promising,
China and the United Kingdom are seeing a decline in Covid-19 figures to keep buyers optimistic.

It should be noted that, with regard to the new elections, political tensions in Japan join the Sino-American conflicts to challenge the bulls. 

In addition, talk about reducing the purchase of ECB bonds, due to strong inflation data from the bloc and hesitation about the Fed’s next moves amid conflicting data,
also weighs heavily on market morale.

Positive performance for major exchanges on Wall Street during August

Stock indices in the United States fell on Tuesday in the 0.1% bracket, but at the end of the month
they showed a steady rise in the Standard & Poor’s 500 (+ 3%),
Nasdaq (+ 4%), and Dow Jones (+ 1%).

The Converse Broad index of consumer confidence in the United States fell in August to 113.8 points (the lowest level since February),
with expectations of a decline to 124 points.

At the end of the trading week, key labor market data will be published. 

Economists surveyed by the Dow Jones predict that the number of jobs created in August
will reach 750,000, with unemployment falling to 5.2%.

Collective rally of Asian indices

On Wednesday in Asia, stock indices rose (Japan’s Nikkei 225 index rose 1.3%,
China’s Shanghai Composite – 0.6%, Hong Kong’s Hang Seng – 0.6%), “plus” U.S. stock futures (the S & P 500 rose 0.4%).

Investors are assessing the economic impact of the Delta strain of coronavirus infection in Asia. 

They’re trying to figure out which industries to win and which to lose against the backdrop
of problems caused by increasing accidents,
including supply chain disruptions and by the population’s low consumption.

The China Purchasing Managers’ Index (PMI) declined from Caixin Media Co.

And Markit, in August to 49.2 points from 50.1 points the previous month. 

The State Statistical Office (CSO) published that the Caixin Index included more private companies representing SMEs than the PMI. 

A reading of the Procurement Managers’ Index above 50 points indicates an increase in sector activity,
and below it indicates weakness.

Oil and gold rally and positive trading on Wall Street and Asia

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