Brent at $85 and significant losses on Wall Street and Asia

2021-11-10T17:58:17
Asia Brent Wall Street
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Brent at $85 and significant losses on Wall Street and Asia

Brent at $85 and significant losses on Wall Street and Asia: Oil managed to rise dramatically during yesterday’s session, after the American Petroleum Institute announced, contrary to expectations, a decline in US inventories. 

Evest follows market developments in the following report.

Topics:

Oil continues to rise due to US inventories decline and Brent exceeds 85 Dollar

Negative dynamics in Asia and Wall Street and Standard & Poor’s breaks its longest rising streak since 1997

Tesla’s losses continue

Gold declines as the US dollar stabilizes

 

Oil continues to rise due to US inventories decline and Brent exceeds 85 Dollar

Oil prices continued to rise on Wednesday morning against the backdrop of data from the American Petroleum Institute about an unexpected decline in US inventories.

Brent crude futures for January on the London Futures Exchange rose by $0.24 (0.28%), to $85.02 per barrel. 

On Tuesday, the future rose $1.35 (1.62%) to $84.78 per barrel.

West Texas Intermediate crude futures’ prices for December on the New York Mercantile Exchange (NYMEX) rose by $0.04 (0.05%) to $84.19 per barrel. 

During the previous session, West Texas Intermediate crude rose by $2.22 (2.7%) to $84.15 per barrel.

According to estimates by the American Petroleum Institute, U.S. oil reserves fell by 2.5 million barrels last week,
while experts predicted an increase of 1.9 million barrels. 

Meanwhile, oil inventories at the terminal in Cushing (Oklahoma), where oil traded on the New York Stock Exchange is stored,
rose by 234 thousand barrels.

API receives information from refinery operators, storage tanks and pipelines on a voluntary basis.

The United States Department of Energy will publish an official report on reserves volume dynamics later in red. 

The experts interviewed by Standard & Poor’s Global Platts predict a weekly increase in oil reserves by an average of million barrels.

Gasoline inventories are expected to decline by 1.6 million barrels, while distillation inventories remain unchanged

 

Negative dynamics in Asia and Wall Street and Standard & Poor’s breaks its longest rising streak since 1997

Stock indices in Asia and the Pacific show negative dynamics on Wednesday.

Japan’s Nikkei 225 fell by 0.58% and China’s CSI300 by 1.4%. US S&P 500 index’s futures fell also by 0.37%.

US stocks declined on Tuesday, as the Standard & Poor’s 500 broke the record streak after hitting the longest (8 sessions in a row of rising) since 1997.

On the basis of Tuesday’s trading, the Dow Jones Industrial Index fell by 112.24 points (0.31%) to 36319.98.

Standard & Poor’s 500 fell by 16.45 points (0.35%) to 4685.25. The Nasdaq Composite Index lost 95.81 points (0.6%) to 15886.54.

Some investors saw the market decline as a small respite after several days of sustained gains.

The company’s strong third-quarter reports support the stock market, despite continued investor concerns regarding rising inflation and supply chain problems.

According to statistics released on Tuesday, there was a slight increase in the producer prices’ rise rate in October,
compared to the previous month – to 0.6% from 0.5% in September. 

The significant acceleration growth is due to higher gasoline prices (6.7%).

US producer prices jumped, on an annual basis, at a record of 8.6%, as in the previous month.

In addition, the National Federation of Independent Business reported that its Small Business Optimism Index fell 0.8 percentage points in October,

to 98.2 points, the lowest level since March.

Tesla’s losses continue

Tesla lost approximately 12% in price.

On Monday, it became known that the brother of Tesla’s chairman, Kimball Musk, a member of the company’s board,
last Friday offered an option to buy 25,000 Tesla stocks at $74.17 per stock ,
and were immediately sold on several slices at $1223 to $1236 per stock, earning about $108.8 million.

at the end of last week, Elon Musk promised to sell 10% of his shares in the company, if Twitter users voted for such a move,
and according to the results of a poll conducted on this social network, he would sell securities worth about $21 billion.

Gold declines as the US dollar stabilizes

old prices declined on Wednesday as the dollar stabilized, with investors expecting major inflation data in the United States
that could have an impact on the Fed’s next policy move.

Spot gold fell 0.4 percent to $1824.90 an ounce after hitting its highest level since September 3 at the previous session.

US gold futures declined 0.1 percent to $1828.40.

Its weight on alloys increased by increasing its cost to buyers with other currencies, and the US dollar rose by 0.1%.

The focus now turns to the US Consumer Price Index (CPI) report to be released later in the day,
given the possibility of a higher reading due to a tight labor market and turmoil in global supply chains.

In a Reuters poll, economists expect a 5.8% increase in the consumer price index in the 12 months to October.

The report follows the Fed policymakers’ indication that interest rate hikes were not yet on the table earlier this week,
although two of the central bank’s most pessimistic officials said on Tuesday, they expected more clarity on the economic outlook by next summer.

Gold tends to benefit from low low-interest because it reduces the opportunity cost of the metal that does not yield a return.

On the other hand, the price of spot silver stabilized at $24.28 per ounce, platinum fell by 0.7% to $1052.00, while palladium rose 0.5% to $2031.89.

 

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