A strong start for oil and Tokyo Stock Exchange complete trading in the green area


A strong start for oil and Tokyo Stock Exchange complete trading in the green area

A strong start for oil and Tokyo Stock Exchange complete trading in the green area:

Oil has witnessed a good week start with a rise of nearly 0.5%for the two benchmarks,
as the delay in talks between Iran and the United States seems to have pushed oil back into the green zone after the losses of last week.

Evest is following up on all that happens in the market of trading goods, currencies,
and stocks and discusses it with you on a daily basis.


Oil rises after the US-Iran negotiations are renewed

Today, oil prices rose amid a delay in renewing the nuclear agreement with Iran,
as indirect talks between Washington and Tehran were resumed this week.


The price of Brent crude futures for July delivery in the London Futures Exchange was $66.81 a barrel,
$0.37(0.56%) higher than the closing price of the previous session.


The price of West Texas Intermediate crude oil futures in electronic trading in the New York Mercantile Nimex
Exchange rose by $0.37(0.58%) to record $63.95 a barrel.

Last week

Last week, oil prices declined after Iranian President Hassan Rouhani said that the
United States was ready to lift sanctions on his country’s oil, banking and shipping sectors.


Analysts said that Iranian oil production had risen during recent months,
possibly in anticipation of lifting sanctions.

On Sunday

On Sunday, the Speaker of the Iranian Parliament said that the three-month surveillance agreement between Tehran and the United Nations nuclear observer had ended, and added that the access to some Iranian nuclear facilities would be closed.


The announcement by the Speaker of the Iranian Parliament, Mohamed Bagher Kalibaf, that the International Atomic Energy Agency (IEA) had lost its right to view images of the activities of nuclear facilities in Iran, in a sign of possible disagreement in the talks, led to the escalation of oil prices, which fell last week with supply concerns.


Recalling the expiration of the deadline for lifting sanctions yesterday, Kalibaf said that “the three-month period in which images will be deleted if the sanctions are not lifted, ended yesterday.

The International Atomic Energy Agency (IEA) has no right of access to the images of our nuclear activities”.

European diplomats

Last week, European diplomats said that failure to agree on the extension of the control
the agreement would lead to a crisis in the indirect talks between Washington
and Tehran on the revival of the 2015 nuclear agreement.

These talks are scheduled to be resumed in Vienna this week.


In May 2018, former President Donald Trump unilaterally withdrew the United States
from the nuclear agreement and renewed sanctions against Iran.

Nuclear agreement

The potential interruption of the ongoing nuclear agreement negotiations between Iran and the United States has been effective in increasing prices.

The talks which began on April 6 in Vienna, the capital of Austria, and discussed the full implementation of the Iranian nuclear agreement,
called the comprehensive Joint Plan of Action, and the United States’ return of the agreement to lift sanctions, is expected to continue during this week.


Yesterday, On the other hand, Iranian President Hassan Rouhani, in a statement said that they had limited American sanctions to advances in the industry.

Rouhani said that the Washington Administration had declared its readiness to lift sanctions within the framework of the ongoing nuclear negotiations in Vienna, adding that “we will continue negotiations in Vienna until the final agreement is reached”.

higher oil prices remain unchanged

Even with a possible resumption of exports from Iran, arguments for higher oil prices remain unchanged
due to the increasing global demand caused by vaccination, according to Goldman Sachs analysts.


Goldman Sachs analysts added: “Assuming a restart in July, we estimate that Brent prices will
continue to reach $80 a barrel during the fourth quarter of 2021,
with the new core October reboot scenario still supporting expectations at $80 a barrel”.


Positive dealings in the Japanese Stock Exchange

In the Asian Stock Market, the Tokyo Stock Exchange ended slightly higher today.

This is the third consecutive session in the green zone, backed by the opening of the two
new vaccine-offering centers in Japan today, raising hopes for a faster-than-expected economic recovery.


The Nikkei index rose by 0.17% to reach 28364.61 points, while the Topix index extended by 0.44%, to record 1913.04 points.

Japanese analyst

A Japanese analyst told AFP that the opening of collective vaccination centers in Tokyo and Osaka
is positive news as investors are worried about the slow vaccination campaigns in Japan.


Barely, 2%of the country’s population has so far received 2 doses of Pfizer and Bayonet.


However, gains in Tokyo may remain limited during the coming days, as local media indicated
a possible extension beyond May 31 of the current emergency in 10 Japanese departments in the face of Japan’s fourth wave of infections.

Hong Kong

In Hong Kong, the Hang Seng Index fell by 0.26%.

On the other hand, Shanghai and Shenzhen Composite indexes were closed at a height.


SoftBank Group lost 2.23% to reach 8315 yen.

Questions about its governance model resurfaced with the next departure, which was announced on Friday,
for 3 members of its board of directors, including Ron Fisher, the group’s vice president, who should still be an investment strategy adviser.


However, the outgoing External Director Yoko Kawamoto essentially posted a vague message on the group’s website,
raising doubts about the toughness of internal oversight mechanisms towards the CEO of Masayoshi Son.

Currency market

In the currency market, the euro rose against the dollar,
at a rate of one euro to $1.2194 against 1.2182 last weekend.

The yen against the dollar rose by a rate of one dollar to 108.73 yen against 108.96 yen on Friday.


The Japanese currency followed the same trend against the euro,
reaching 132.59 yen against 132.73 yen on Friday.


A strong start for oil