Oil continues gains China and Japan markets losses
Oil continues gains China and Japan markets losses
Oil continues gains China and Japan markets losses: Oil continues to perform strongly positively;
despite the challenges, it has been facing for more than a year and a half due to the COVID-19 virus.
Oil is trying to take advantage of the recent demand recovery from the USA and Europe,
where restrictions are gradually being lifted, increasing demand for oil.
Evest follows all this and more, through the next report.
Oil continues to gain as U.S. inventories fall
Oil prices have accelerated their upward trend, amid better expectations of demand,
which are expected to continue to rise as summer arrives and vaccinations increase, especially in the United States and Europe.
World crude oil market prices also moved close to multi-year highs on Wednesday morning,
with Brent crude rising for the fifth day in a row due to lower inventories and increased demand.
Analysts said prices will continue to rise, after a nearly 50 percent rebound so far this year.
On Wednesday morning, August futures for North Sea Brent crude rose by 58 cents, up 0.78 percent, at $74.57.
While, West Texas Intermediate crude futures rose by 0.75% at 54 cents, to $72.66 a barrel.
Brent crude price anchored around the daily maximum of $74.72, the strongest level since April 2019.
West Texas Intermediate crude reached $72.82, the highest level ever since October 2018.
West Texas Intermediate crude closed yesterday at $72.25 a barrel, an increase of 1.93 percent,
while London Brent crude price rose by 1.77 percent to $74.15 a barrel.
Glencore plc and Vitol Grou
Glencore plc and Vitol Group said during the Financial Times Global Commodities Summit that they are seeing higher gains in oil.
Jeremy Weir, CEO of Trafigura, added that there is a risk of crude oil prices will reach $100 a barrel due to a lack of supply
amid insufficient investment in the sector, according to Bloomberg.
During the session, West Texas Intermediate’s crude hit a new annual high of $72.31 a barrel,
the highest level ever since October 2018, while Brent’s crude reached a maximum of $74.19 the highest level ever since April 26, 2019.
“The price increase is also due to the expectation that Iranian oil will not return to the market in the short term,
as talks to reach a new nuclear agreement have not progressed,” said Gabriella Seiler, Director of Economic and Financial Analysis.
the weekly report from the United States Energy Information Administration (EIA)
On the other hand, investors are expecting the weekly report from the United States Energy Information Administration (EIA) to be released today Wednesday,
with the market expecting a 2-million-barrel decline in U.S. inventories.
Everyone expects higher oil prices, and demand for crude oil is expected to jump significantly and return to pre-coronavirus
levels in the second half of next year as the US, European and Chinese economies recover, says Edward Moya of the US website Oanada.
The American Petroleum Institute said, on Tuesday, that the level of commercial oil reserves fell by 8.5 million barrels in the week ending June 11.
The United States Government’s Energy Information Office released its data on Wednesday,
with analysts expecting a 3.3 million-barrel drop after a 5.2 million-barrel decline last week.
The International Energy Agency (IEA) predicted in its June oil market report that by the end of next year,
global oil demand could rise by 3.1 million barrels to 100.6 million barrels, returning to pre-pandemic levels.
Leaders of major oil trading companies
Leaders of major oil trading companies also expect demand to reach pre-pandemic
levels in the second half of 2022 and oil prices to remain above $70 this year.
Analysts at the U.S. investment bank Goldman Sachs indicated last week that they expect the price of Brent crude to reach $80 a barrel in the summer
as COVID-19 vaccination campaigns curb the pandemic and thus boost global economic performance.
A collective rise in European exchanges
The exchange markets in Europe rose with the opening of the meeting today, amid shadows of optimism.
Among the major European markets, the German DAX index rose 0.04%, the British FTSE index rose 0.51%,
the French CAC 40 index rose 0.19%, and the Spanish IBEX 35 index rose 0.02%.
The decline of Chinese and Japanese exchanges
The Tokyo Stock Exchange ended a lukewarm session on Wednesday, commenting on ads and comments from the United States Federal Reserve (Fed) at the end of its meeting later in the day.
The Nikkei index ended down 0.51% to 29291.01 points, while the extended Topix index closed steady (+ 0.02% to 1،975.86 points).
According to experts, the Nikkei index fell due to profit-making with market players in a wait-and-see mode against the Fed.
The focus will be on the Fed’s message and on the slightest evidence it can provide on the gradual reduction of its support for the American economy,
summarized in the note by Robert Carnell, Head of Research for Asia and the Pacific at ING.
On the other hand, Chinese markets fell, in Hong Kong, the Hang Seng index fell by 0.59%,
the Shanghai Composite fell by more than 1% at the close and the Shenzhen Index fell by 2.3%.
On Wednesday, the Chinese authorities acknowledged a minor nuclear accident at the Taishan Nuclear Power Plant
in the south of the country, while ruling out any danger.
Oil continues gains