Oil stabilizes as stocks decline in Tokyo while the US dollar rises

Oil prices changed slightly on Thursday,
and Tokyo shares opened lower on Thursday after US losses.
At the same time, investors earned profits after recent market gains,
and the dollar rose during morning trading.

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Oil prices stabilized as recession concerns sent US stocks lower

The dollar rises against the yen and sterling and stabilizes at the euro

Tokyo stocks open lower after US losses

Oil prices stabilized as recession concerns sent US stocks lower

Oil prices changed slightly on Thursday as investors suffered a decline in US inventories,
increased production from Russia and concern about a possible global recession.

Brent crude futures rose by 10 cents, 0.1 percent to $93.75 per barrel by 0347 GMT,
and US crude futures increased by 10 cents, 0.1 percent to $88.21 per barrel.

Futures have declined over the past few months,
as investors have grown weary of economic data
that has raised concern about a potential recession that could hurt energy demand.

In the experts’ view, the oil market is still in a multi-year tightening cycle,
adding that investors are looking for upward stimulus in the near term.

They also added that concern about the recession is well recognized,
but rising catalysts such as China’s return or deteriorating
supplies from Russia remain elusive.

China’s refining production remained weak in July,
as a strict coronavirus lockdown and fuel export controls curbed production.

An Economy Ministry document showed

that Russia began to gradually increase
oil production after sanctions-related restrictions and with increased purchases by Asian buyers,
prompting Moscow to raise its forecast for production and exports until the end of 2025.

Russia’s energy export earnings are expected to rise by 38 percent this year,
in part because of higher oil exports,
a sign that supplies from the country have not been
affected as much as markets originally expected.

Energy Information Administration data showed
that US crude inventories fell by 7.1 million barrels in the week ending August 12,
against expectations for a decline of 275 thousand barrels,
with exports reaching 5 million barrels per day, the highest on record.

On Wednesday, data from the Joint Organizations Data Initiative
showed Saudi Arabia’s crude oil exports rose in June,
while production rose to a more than two-year high.

In the meantime, the market awaits developments after talks to revive Iran’s 2015
nuclear deal with world powers, which could eventually increase Iranian oil exports.

Data companies that track flows said Iranian crude exports
could rise for the third consecutive month in August,
boosted by Chinese demand under the rising cost of Russian oil.

artıcal name Oil stabilizes as stocks decline in Tokyo

The dollar rises against the yen and sterling and stabilizes at the euro

The dollar was on top on Thursday, minutes after the Federal Reserve meeting in July,
suggesting that US interest rates remain higher for longer to lower inflation.

The dollar’s rise against the countries of the Antipodes Islands,
especially the Australian dollar, increased,
which was pushed down as weaker-than-expected wage
growth affected Australia’s interest rate outlook.

The Australian dollar fell by 1.2 6 percent overnight and approached $ 0.6930 on Thursday,
slightly above Wednesday’s week low of $0.6912 and the 50-day moving average of $0.6923.

Australia’s labor market data is due at 0130 GMT.

The New Zealand dollar also declined,

losing nearly 1 percent to shed an initial jump after the central bank
raised interest rates and tightened the expected rate hike path.

The dollar rose by 0.6 percent against the Japanese yen overnight yesterday,
settling at 134.90 yen on Thursday, while the euro was at $1.0184,
and the US dollar index stood at 106.570.

The minutes showed that Fed officials saw little evidence late last month
that US inflation pressures were declining.

The minutes pointed to an eventual slowdown in the pace of increases,
but not the shift to cuts in 2023 that traders until recently were pricing in interest rate futures.

Traders see a 36 percent chance of raising the federal interest rate by 75 basis points,
respectively, in September, and expect rates to peak at around 3.7 percent by March,
hovering there until later in 2023.

Sterling also fell overnight after double-digit inflation-focused investors’
concern about recession risks.

Official figures showed UK consumer price inflation rose to 10.1 percent in July,
the highest since February 1982, and shortly after sterling fell by 0.4 percent to $1.2050.

artıcal name Oil stabilizes as stocks decline in Tokyo

Tokyo stocks open lower after US losses

The benchmark Nikkei 225 index declined by 0.93 percent, or 273.02 points,
at 28949.75 during early trading, while the broader Topix index fell by 0.76 percent,
or 15.35 points, to 1991.64 points.

Wall Street stocks closed lower, despite some positive sentiment minutes
after the Federal Reserve’s July meeting,
which revealed that some policymakers had recognized the risks of excessively raising interest rates,
citing the need for a slower approach where appropriate.

The minutes stated that the US central bank remained generally
committed to continuing to raise interest rates to fight inflation.

Among the major stocks, Sony fell by 1.80 percent to 11,745 yen,
and SoftBank fell by 0.62 percent to 5,766 yen.

Advantage, which manufactures semiconductor test kits,
fell by 2.34 percent to 8,340 yen.

artıcal name Oil stabilizes as stocks decline in Tokyo

Oil stabilizes as stocks decline in Tokyo

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