A Collective rise in Asian indices.. Oil is back down again
A collective rise in Asian indices.. Oil is back down again
A collective rise in Asian indices: Rescue efforts have finally been able to float the giant container ship in Suez Canal,
which remained stuck for more than 4 days.
This made all world markets waiting for what is happening.
As some say some people’s disasters are other’s benefits.
Oil succeeded to rise taking advantage of stopping navigation in Suez Canal following this accident,
but it returned to retreat again after the crisis has been ended.
Evest is following up on all developments in the financial arena and relays them to you daily.
Oil falls again after success in floating Suez Canal’s ship
Crude oil prices retreated by more than 2%, after succeeding in removing the giant container ship,
which closed the world trade route of the Suez Canal.
Brent crude oil price for a contract of May 2021 delivery by $ 1.38 or 2.1% to record $ 63.19 a barrel.
Similarly, West Texas Intermediate crude for the May delivery contract fell by $ 1.48 or 2.4% to reach $ 59.49 a barrel.
A source from Reuters said that as of yesterday, the stranded Ever Given container ship,
was able to float and it will be inspected before being transported.
Service provider Inchcape Shipping said that the 400-meter longship was restored to its floating condition
in the early hours of Monday and it will be secured.
However, it was not initially clear to know when the important waterway could be opened to pass again.
Suez Canal plays an important role in transporting crude oil.
Hundreds of other container vessels, bulk tankers, and oil tankers remain at both ends of the channel.
However, news of the rescue crew’s success to immediate transport of the container ship led to a sharp drop after trading at a slight decline in morning dealings.
Oil prices have significantly fluctuated in recent days as traders and investors are trying to assess the impact of blockage of major trade crossing points and effects of the widest closure to stop infections of Coronavirus in most parts of Europe.
According to analysts
According to analysts, volatility will continue, as by looking at last week’s fluctuation,
Brent crude seems to be ready to move towards a minimum level of $ 60.00 to $ 65.00 a barrel,
while US oil is likely to fall to the bottom between $ 57.50 to $ 62.50 a barrel.
Prices have somewhat been supported by expectations that the Organisation of Petroleum Exporting Countries and its allies will keep production levels low when they meet this week.
Standard and Poor’s Global Platts quoted some analysts as their expectations that OPEC + or Saudi Arabia would not take risks and they will bring more oil to market.
Last month, OPEC + countries unexpectedly withdrew diluted production restrictions in April.
This time, Goldman Sachs analysts also don’t expect a change in production,
while Citigroup experts believe that OPEC +may tighten restrictions of production.
Data from American oil services company Baker Hughes, released last Friday,
showed that a number of oil and gas platforms operating in the United States has been risen by 6 units to 417 last week.
In terms of demand, the tense situation regarding Coronavirus in many countries remains a burden.
The infection situation is worsening, especially in large states of the European Union.
This threatens to impose additional restrictions on public life, which by its turn will affect the economy and demand for oil.
The number of new Covid-19 infections increased all over the world for the fifth week in a row.
The collective rise in Asian indicators
In Asia, stock markets are moving in the right direction.
Tokyo stocks rose amid optimism regarding corporate results and recovery of the American economy.
Chinese stock markets also rose after rising in profits of Chinese industrial companies emerged during the first two months.
MSCI index rose by 0.1%, while the Japanese Nikkei index in Tokyo rose by 1%, but in Hong Kong, Hang Seng Index rose by 0.4%.
Shanghai and Shenzhen indexes rose by 0% and 8%in a row. Indian Mumbai BSE Sensex index rose by 1%.
Wall Street ends week rising
US President Joe Biden announced a new target of distributing 200 million vaccines for the Covid-19 virus during his first 100 days in office.
As of Friday, 100 million doses against Coronavirus have already been given since he entered the White House.
Friday’s session concluded with a rise in main indicators of Wall Street,
as Standard and Poor’s 500 indexes rose by 1.7%, while the Nasdaq index rose by 1.2%.
US banking sector positively reacted to Fed’s permission to resume repurchasing shares and profits distributions from June or this year.
It is supposed to return to normal working hours on Wall Street, hours after shifting to summer timing in Europe.
The opening will return again at 3:30 pm, and it will close at 10 pm.
Dallas Federal Reserve Board’s Manufacturing Activity Survey for March will be released today.
Traders are waiting for the publication of the US Jobs Report for March,
National Bank’s annual figures, and market response to President Biden’s massive investment plan.
Britain strongly faces the Covid-19 virus… Expectations for DAX to rise
Despite the development of the third wave of Coronavirus in Europe,
the British Deputy Minister of Health announced that as of September,
the oldest and most vulnerable people will get the third dose of vaccines,
which is to strengthen their immunity, especially to variants of vaccines.
However, this did not prevent expectations of British Footsy index opening declined by 0.12%,
while expectations indicate rising in the German DAX index by 0.06%, and French CAC by 0.11%.