Oil is down again .. and Wall Street is stable


Oil is down again .. and Wall Street is stable

Oil is down again .. and Wall Street is stable: Oil is down again after a special session yesterday,
as concerns about the Covid-19 virus continue to affect the market.

Evest follows developments in the commodity trading market in the following lines.

Oil is down again after rising by more than 2% on Tuesday

Oil prices fell on Wednesday after a jump of more than 2% in the previous session.

Traders’ concerns about the new wave of Covid -19 worldwide continue to put pressure on the market.

Brent crude futures for October on the London Futures Exchange fell by $0.16 (0.23%),
to $70.47 per barrel. Brent crude rose $1.59 (2.3 percent) to $70.63 per barrel on Tuesday.

September futures prices for West Texas Intermediate crude had by this time fallen in electronic trading on the New York Mercantile Exchange (NEMX) by $0.19 (0.28%),
to $68.1 per barrel. During the previous session, the future rose by $1.81 (2.7%) to $768.29 per barrel.

Many countries, including China, are reintroducing quarantine restrictions, and this has already begun to affect oil demand, according to Bloomberg. 

According to the Agency, at least four Asian oil refineries plan to purchase fewer raw materials from Saudi Aramco in September than is specified in currency futures.

According to experts, most Asian States are accelerating vaccinations and will eventually ease quarantine procedures.

However, they expect that the rapid growth in oil demand observed earlier this year will slow significantly by the end of the year.

On the other hand, data from the American Petroleum Institute (API), published on Tuesday, showed a decline in US inventories last week by 816 thousand barrels.

The decline in reserves, if confirmed in the official Department of Energy report on Wednesday,
will be recorded at the end of the third consecutive week.

The experts interviewed by S&P Global Platts predict that the average oil reserves in the United States last week fell by 600 thousand barrels and gasoline – by 2.4 million barrels and distillates – by 600 thousand barrels.

The US market developments

US stocks closed on Tuesday, with the Dow Jones index closing at a record high amid news that the U.S. Senate has approved a trillion-dollar infrastructure project.

Market participants are expecting consumer and industrial inflation data in the United States in July,
which the country’s Department of Labor will publish on Wednesday and Thursday,
showing that the Department’s unemployment data last Friday were much greater than expected.

The focus also remains on the corporate reporting season.

American companies have shown very strong results over the past quarter, despite the negative economic impact of the Covid-19 pandemic, but this does not lead to sharp stock jumps.

Dow Jones Industrial Average and Standard & Poor’s 500

The Dow Jones Industrial Index and the Standard & Poor’s 500 both set new records after the Senate passed a trillion-dollar investment bill in infrastructure.

After a dismal session, US stocks returned to gains in the August 10 session,
thanks to a $1 trillion infrastructure investment package approved by the U.S. Senate, which boosted stocks related to economic growth.

At the end of the session on August 10, the Dow Jones Industrial Index rose by 162.82 points,
or 0.46%, to a record 35264.67 points, led by a Caterpillar stock of about 2.5%. 

The S&P 500 also added 0.1% to 4436.75 and closed at the highest level.

In the meantime, the Nasdaq composite index fell 0.5% to 14788.09 points, as higher US bond yields affected tech companies’ stocks.

the infrastructure investment package

On August 10, the Senate passed the infrastructure project, including $550 billion in new spending on transportation and broadband. 

The project will be passed to the House of Representatives for a further vote before President Joe Biden signs it into law.

If the infrastructure investment package is officially effective, $1 trillion will be spent for bridge, road,
and infrastructure projects across the United States in the next five years.

With the rise of new Covid-19 cases in the United States, progress is being made in the infrastructure package that will help recover the world’s largest economy.

The rapid spread of the Delta variant has led to a rise in the number of infections and hospitalizations caused by Covid-19 in the United States to the highest level in 6 months, with an average of 100000 cases for 3 consecutive days, up 35% last week.

Shares likely to benefit from the bill for infrastructure spending jumped, with steel manufacturer Nucor rising by 9.6%.

Infrastructure ETFs, including iShares U.S. ETF Infrastructure and Global X U.S.

The European Training Foundation for Infrastructure Development also recorded notable results in this session.

Bank stocks also jumped amid rising bond yields. Wells Fargo stocks rose 2%, while Goldman Sachs and Bank of America stocks rose 2% and 1.8% respectively.

technology stocks

Investors sold technology stocks when interest rates improved, and FAANG stocks closed in the red zone.

Shares of energy, industry, and materials jumped, likely to benefit from President Joe Biden’s spending bill.

ExxonMobil and Chevron shares rose 1.7% and 1.8% respectively. 

Stocks linked to the economic re-opening also reduced their losses from August 9.

Norwegian Cruise Line shares jumped 4.7% and American Airlines rose 1.8%.

Investors are expecting CPI and PPI data, both inflation indicators, to be released on August 11 and 12, respectively. 


Oil is down again .. and Wall Street is stable