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Covid-19 negatively affects oil markets

Covid-19 negatively affects oil markets and stock markets in Asia

Covid-19 negatively affects oil markets and stock markets in Asia

Covid-19 negatively affects oil markets and stock markets in Asia: Covid-19 is still the basic driver of markets, as current development in many Asian countries currently refers to a close setback for some markets.

 

Evest is daily following up all developments in the economic scene and transmits them directly to you.

 

India causes oil to retreat

Today, oil prices declined amid renewed increases in Covid-19’s cases in many Asian countries,
calling into question prospects for a recovery in global demand.

 

June futures cost for Brent oil on London Futures Exchange was $ 66.09 a barrel,
$ 0.48 (0.72%) below the closing price of the previous session.

As a result of trading on Tuesday, these contracts decreased by $ 0.48 (0.7%) to record $ 66.57 a barrel.

West Texas

West Texas Intermediate crude futures price for June’s delivery in electronic trading on New York Mercantile Exchange (NIMEX) was $ 62.15 a barrel, $ 0.52 (0.83%) below the level at the previous session.

On Tuesday, the value of these contracts fell by $ 0.76 (1.2%) to record $ 62.67 a barrel.

India 

Indian authorities have announced new quarantine procedures in a number of cities,
including New Delhi. Meanwhile, in some Japanese provinces, an emergency system may be introduced due to increased numbers of infections – although the Olympics will start in the country in just 3 months.

 

In light of low prices, concern that strict measures resulting from this increase in the number of new species of Corona (Covid-19) cases in India, the world’s third-largest consumer of oil, will negatively affect demand for oil.

the India Ministry of Health

According to a statement issued by the India Ministry of Health, with 295,000, 41 new cases during the last 24 hours, the total number of infections reached 15 million and 616,130 cases, while 2023 people have died during the last 24 hours due to Covid-19 in the country.

The total number of deaths has risen to 182,553 thousand people.

 

In India, the second most affected country of epidemic after the United States,
cases had rapidly risen since February, causing a massive wave of infections.

Quarantine measures have been implemented in most countries,
as it became the largest number of cases in the world on a daily basis since April 2.

the first countries to face the new wave

In India, which is one of the first countries to face the new wave of the epidemic around the world,
it is estimated that increasingly mutant and infectious Covid-19 strains are effective in recent increases in cases.

 

As for India, which is facing a crisis because of a shortage of oxygen tanks and hospital beds,
experts warn that the health system is at a “breaking point”, noting that hospital occupancy rates are at their highest level after increasing cases in the country.

 

According to experts, recovery in global demand for oil will not be stable,
and the world will witness these restrictions from time to time.

In general, demand for oil will continue to increase in large areas.

 

On the other hand, the prediction of increased United States commercial crude oil inventories,
the world’s largest consumer of oil has also been effective in reducing prices.

American Petroleum Institute

According to a report issued on Tuesday by American Petroleum Institute,
US oil inventories increased by 436,000 barrels last week.

Market expectations were that oil inventories would decrease by 2,860,000 barrels.

If data is officially confirmed, an increase in American inventories will be the first during 4 weeks.

 

The United States Department of Energy will issue weekly data of energy inventories later today.

Experts predict an average reduction of 4.4 million barrels in oil inventories for the week ending on April 16.

 

Today’s performance of gold

The price of gold rose by 0.42% to record $1784.70 an ounce,
while June gold futures rose by 0.37% to record $ 1785.00 in commodity markets in New York.

 

Japanese Stock Exchange is suffering

Today, the Tokyo Stock Exchange has suffered heavy losses for the second session in a row,
as investors fear the Japanese economy will be affected by enhanced actions against Covid-19 which are planned by many departments in the country.

Nikkei index

The main Nikkei index fell by 203% to record 28.508.55 points after it had already dropped by 2% on Tuesday.

This is its first closing by less than 29.000 points since March 25.

The Border Topix index lost 1.98% to reach 1888.18 points.

 

On Tuesday, the Ministry of Osaka asked the Central Government to declare a state of emergency in its territory to try to stop the escalation of Covid-19, while other departments, including Tokyo, are considering the same procedure.

 

With a promise to be tougher than the previous regime in effect from January to March,
this new emergency may be accompanied by a request to close bars, restaurants, supermarkets,
recreational parks, and cinemas, which will be further affecting the country’s economy.

China

In Chinese markets, the mood was bleak or at least cautious, as, in Hong Kong, the Hang Seng Index fell by
1.6%, at around 0.5:55 GMT, while changing Shanghai and Shenzhen indexes, was limited.

 

Taiwan Stock Exchange fell by 0.7%, while Seoul retreated by 1.52%, but Sydney declined by 0.29%.

 

A collective decline for Wall Street indicators

In New York, the Dow Jones Industrial index fell by 0.75%, while the Standard and Poor’s index fell by 0.68%,
but the Nasdaq Composite index decreased by 0.92%.

Futures indicators are expected to slightly fall on today’s opening.

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