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Oil is at its highest level in two years

Oil is at its highest level in two years.. Tokyo Stock Exchange is rebounding

Oil is at its highest level in two years.. Tokyo Stock Exchange is rebounding

Oil is at its highest level in two years.. Tokyo Stock Exchange is rebounding: Some US data showed signs of beginning to recover from the Covid-19 epidemic both economically and socially, supporting many markets, primarily the oil market.

Evest is following up on the latest developments in the world markets and transmits all the details to you through the following lines.

The return of life to American airports revives oil prices

The price of oil is back above $66 a barrel, thanks to investor’s optimism regarding a recovery in global demand for black gold amid continuing fighting the virus in Asia.

The price of Brent crude in London goes to $70 a barrel.

On the other hand, West Texas Intermediate crude oil in New York is traded at above $66 a barrel,
after its highest closing in two years during the previous session.

fuel demand

The outlook for fuel demand in main regions around the world seems to be improving, supporting oil prices.

The West Texas Intermediate crude barrel for June delivery in New York Fuel Exchange is worth $66.53, up by 0.39%.

The cost of Brent crude for July delivery in The European Fuel Futures Exchange in London is $69.75 a barrel, by an increase of about 0.42%.

West Texas Intermediate crude on the Nymex Stock Exchange in New York rose by 1.1% during yesterday’s session, but Brent crude increased by 1.4% as well.

West Texas Intermediate crude futures for July delivery ended yesterday’s session by a rise of more than 1.5% to reach $66.36 a barrel after the United States, along with China and some parts of Europe, showed clear signs of recovering after a successful vaccination campaign, a context that eases fears.

Oil prices

Oil prices are currently being supported by a weak dollar as well,
making oil rolling in US currency cheaper for parties outside the dollar region.

The good mood in the Asian stock markets also provided a back wind in the oil market.

But essentially, oil prices take advantage of the increasingly positive economic dynamic in the United States and Europe as well as the strong economic situation in China.

The tense situation of Coronavirus in India and the regional spread of HIV in other Asian countries such as Singapore or Taiwan represents a negative balance.

The United States economy is recovering further – experts point out that the number of passengers using American airports is now the highest since the beginning of the epidemic, and it is an indication of a strong improvement in American domestic travel, as this leads to the increasing demand for aviation fuel.

The number of American passengers registering access at airports on Saturday reached 1.85 million – the highest level since March 2020, according to the United States Transportation Safety Administration.

The number of passengers using airport lounges continues to increase
and is currently around 30% lower than the same time in 2019.

May

In May, the price of oil rose by 4% amid falling demand for aviation fuel, but, like other sectors affected by the epidemic, it shows signs of recovering.

The economic recovery abroad, as well as in China and Europe,
eases market concerns about weak fuel consumption in India,
as demand for oil deteriorated during the first half of May,
as a large part of the country is still under domestic restrictions while dealing with the Covid-19 epidemic.

In India, land transport fuel sales decreased by 1.5 compared to April and approximately 1.3 during the period from May 1st to 15th, compared to the same period of 2019,
according to data from the largest three US fuel retailers.

However, the “devastating” emergence of the Covid-19 epidemic in India and the new outbreak in areas that have significantly been preoccupied with the coronary virus – such as Taiwan- reminds investors that recovery from the Covid-19 crisis will be irregular.

According to Reuters, the fuel market is clearly focusing on-demand in the United States, Europe, and China, as Brent crude oil could rise very rapidly to $72 a barrel if it went through strong resistance at $70.

Nikkei rose by 2%

Today, the Tokyo Stock Exchange rebounded, indifferent to the new drift in Japanese growth during the first quarter, which investors predicted.

The main Nikkei index rose to 28,406.84 points (+2.09%) at the close.

This is an upward correction following the release of the weight since last Tuesday.

The extended Topix index recovered by a rate of 1.54% to reach 1907.74 points.

Makoto Sinjuku, an analyst at an investment consultancy at Tokai Tokyo explained that, after the Tokyo Stock Exchange suffered from heavy losses over the entire last week,
there was a “normal” upward correction.

Investors preferred to look for deals.

They were encouraged to take more risk during the afternoon period in Tokyo,
as they felt that United States futures had not declined.

However, Japan’s GDP fell slightly more than expected in the first quarter (-1.3%, compared to the previous quarter), according to preliminary figures released today just before the stock market opened.

In particular, household consumption decreased again, against the backdrop of the return of the country’s emergency in January owing to the resurgence of the Coronavirus.

The continuing health crisis poses the risk of a brief recession with a possible further contraction of GDP during the second quarter.

A collective loss for Wall Street indicators

The Dow Jones index lost 0.16% to reach 34327 points, while the Standard and Poor’s 500 indexes fell by 0.25% to reach 4163 points, and the Nasdaq Composite index, rich in technology and biotechnology shares, fell by 0.38% to record 13,379 points.

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