Oil continues to rise and variation on the American and Asian exchanges
Oil continues to rise and variation on the American and Asian exchanges: Oil continues to capture the attention in the commodity trading market,
maintaining its strong and steady upswing, amid many constraints,
but standing still and moving at a steady pace to restore and rise from pre-epidemic prices as well.
Evest follows what is happening in the world markets, and discusses it with you daily.
Oil is moving upwards stably
Oil prices rose today, Tuesday, amid declining prospects for an agreement on Iran’s nuclear program in the near future.
The August futures price for Brent oil in London Futures Exchange reached $73.12 a barrel,
$0.26 (0.36%) higher than the closing price of the previous session.
The price of West Texas Intermediate crude oil futures for July in electronic trading on the New York Mercantile Exchange (NMX) was $71.13 a barrel,
$0.25 (0.35٪) higher than the final value of the previous session.
Negotiations on an Iranian nuclear agreement are unlikely to conclude before the country’s presidential elections scheduled for June 18,
according to S&P Global Platts, according to a statement by Deputy Foreign Minister Abbas Araghchi.
According to analysts
“If discussions continue, the new Government is likely to take a different position in the negotiations, which could further delay the agreement.”
Experts expect Iran to increase supplies from the current 2.4 million barrels per day to 2.6 million barrels per day in the third quarter to 3 million barrels per day in the fourth quarter. However, if negotiations continue for the second half of the year, these supplies are in question.
Iranian President
For his part, Iranian President Hassan Rouhani called on European Union countries and the United States to fully comply with the nuclear agreement on Monday,
adding that: “Our nuclear activities are entirely peaceful.”
“You have accepted to return to many of your commitments and have announced that you will implement them.
Accept the few issues that remain until the world and our region see more peace,
calm and constructive relations.” Rouhani said.
Analysts indicate that if Iran does not resume exports in the short term,
OPEC + will have to increase production to meet expected demand.
the US Department of Energy’s
In the meantime, the US Department of Energy’s Energy Information Administration raised its forecast for heavy oil production in June
by 32,000 barrels per day from 7.765 million barrels per day compared to 7.707 million barrels per day in May.
In July, the Energy Information Administration expected production to increase to 7.803 million barrels per day.
Investors are concerned about the epidemiological situation in Europe, where,
although the spread of the virus has slowed, some restrictions remain in place.
UK Prime Minister Boris Johnson announced on Monday that restrictive measures in England would be extended for another four weeks,
postponing their repeal from June 21 to July 19 to cover more people for the COVID-19 vaccination.
The British Prime Minister
The British Prime Minister indicated that, given the proliferation of the Delta variant, it was reasonable to wait a little longer before lifting the restrictions.
Crude oil is rising this year as ongoing COVID-19 vaccination programs have reversed the course of the epidemic in the United States, Europe, and China.
However, investors are concerned about the extension of anti-virus control restrictions in Great Britain.
Johnson said that two weeks later on July 5, the situation would be reassessed, and if there was an improvement, the deadline could be extended.
Information from Great Britain tempers market optimism about solid fuel consumption over the next summer holiday.
In addition, WHO Director-General Tedros Adhanom Ghebreyesus warned on Monday that new types of coronavirus have significantly increased
the transmission of the virus and that viruses are “moving faster.”
Meanwhile, China is a bright spot on the world’s fuel demand map.
Demand for gasoline in China fell by 5% in May than in the same period in 2019 – according to estimates by the largest domestic oil companies,
including China Petroleum & Chemical Corp.
Tokyo closes high
The Tokyo Stock Exchange closed high on Tuesday, following Wall Street the day before and pending a meeting of the U.S. Federal Reserve,
which was scheduled to start later today.
The Nikkei index of 225 Japanese high-profile companies rose by 0.96% to 29441.30 points and the expanded Topix index rose 0.8% to 1975.48 points.
Hideyuki Ishiguro of Daiwa Securities indicated that “concerns about inflation are currently
declining and cases of coronavirus infections are declining” in Japan.
“It is a favorable market environment with prospects of normalization of the economy.”
“There is a bit of a wait-and-see attitude” ahead of the Federal Reserve’s monetary policy meeting scheduled for Tuesday and Wednesday, he added.
However, this week’s decline in the Federal Reserve’s support for the U.S. economy is unlikely.
In Hong Kong, the Hang Seng Index lost 0.66% shortly before 07:00 GMT.
Shanghai and Shenzhen closed lower as well.
A variation on Wall Street
The start of the week was mixed for US stock indices.
The Standard & Poor’s 500 Index closed 0.2% higher,
again at new highs after a wave of purchases in the last 30 minutes of trading.
The Nasdaq technology index was also up 0.7%, while the Dow Jones index ended up losing 0.3%.
Interestingly, the yield on 10-year bonds rose by 4 basis points to 1.5%,
which would have a positive impact on cyclical stocks.
Oil continues to rise