Oil is retreating and Nikkei is able to hold out in the green area
Oil is retreating and Nikkei is able to hold out in the green area for the fifth session in a row
Oil is retreating and Nikkei is able to hold out in the green area for the fifth session in a row:
Markets moved in different directions today, as oil retreated after being able to rise during previous sessions, while the Japanese Nikkei index kept up for the fifth consecutive session.
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Oil retreats after recording the highest levels in a week
Oil prices vary today, with the possibility of resuming Iranian oil supplies,
despite expectations of low US commercial crude oil inventories, the world’s largest oil consumer.
Oil prices declined amid fears of a possible resumption of supply from Iran, which could lead to market disruption, while the outlook for improved fuel demand in the United States has exceeded, supported by a decline in crude inventories.
Brent oil was trading at $68.68 a barrel in international markets.
The price of a Brent oil barrel which rose to $68.90 yesterday, today completes at $ 68.49, rising by 0.28% from the closing of yesterday.
Meanwhile, a barrel of West Texas Intermediate crude oil (WTI) found buyers at $66.16.
The two contracts rose on Tuesday, to close at their highest levels in a week, amid hopes of increasing demand with the approaching summer season in the northern hemisphere and lifting the restrictions of the epidemic.
American Petroleum Institute
According to data from the American Petroleum Institute, the US commercial oil crude inventories
retreated by 436,000 barrels last week compared to the previous one.
The Institute announced that gasoline inventories declined by about 2 million barrels, while inventories
of distilleries products retreated by 5.1 million barrels.
While the aforementioned decline expectations support the forecast that demand
will recover in the country, the current negotiations of the nuclear agreement between
Iran and the United States remain to affect the path of oil prices.
Iran and the world powers are negotiating in Vienna since April so as to lay out the steps related to sanctions and nuclear developments that Tehran and Washington should return to full compliance with the 2015 deal.
The two parties met yesterday at the fifth meeting of the talks, which began in Vienna, the capital of Austria on April 6, and discussed the full implementation of the Iranian nuclear agreement, known as the Joint Comprehensive Plan of Action, and the return of the Iranian nuclear agreement.
After the meeting, the press release prepared by the delegation of the European Union and read out to journalists stated that the extension of the Technical Agreement between Iran and IAEA for another month was welcomed.
The statement said:”Efforts have been doubled to ensure full and effective implementation of the program, which is the ultimate objective of the Vienna talks, and the possible return of the United States to the convention”.
Ambassador Michael Ulyanov, Permanent Representative of Russia to the United Nations Office at Vienna, said on Twitter that the fifth and most likely final meeting of the talks on the full implementation of the Iranian nuclear agreement had been held.
For his part, Iranian Government spokesman Ali Rumala said on Tuesday that he was optimistic and believed that Tehran would soon reach an agreement with the world powers to reopen the 2015 nuclear agreement, although the Iranian chief negotiator said that some serious issues remained unresolved in the talks.
On the other hand, despite the gradual removal of restrictions following a decline in the number of new types of Corona “Covid-19” infections in the United States of America and Europe, the world’s largest consumers of oil, the demand for the increase in the number of cases in the Asian region, including India, the third-largest oil importer in the world, and its negative impact is pressing oil prices.
China is also willing to buy cheaper crude oil from Russia
China is also willing to buy cheaper crude oil from Russia, with its appetite growing
amid an uneven recovery in demand in Asia
This year, oil has risen by more than 35%, as strong recovery from the epidemic in the United States, China, and Europe has led to increased consumption, although parts of Asia continue to face the return of the Covid-19 virus.
The price of West Texas Intermediate crude currently indicates that retailers
are preparing for a potential supply crisis just before the busy summer travel season, leading to a jump in demand.
Nikkei’s index is rising for the fifth session in a row
The main index of the Tokyo Stock Exchange, the Nikkei index rose by 0.31% today, and it was able
to complete 5 high sessions, thanks to expectations that the Covid-19 vaccination will be accelerated in Japan
thanks to the mass of new vaccination centers.
The Nikkei index, which includes 225 companies in the market, provided 88.21 points to reach 28642.19.
Topix, which includes companies in the first division, added those with the highest capitalization by 0.06%
or 1.15 points to reach 1920.67 units.
The Tokyo Stock Exchange opened on a decline due to profit collection in the face
of the recent profit chain, but after the first half-hour of the session, it stepped up and maintained its rhythm
for the rest of the day, encouraged by the prospect of an accelerated vaccination campaign in Japan that boosts the financial market.
The air transport sector has reaped the most important gains today along with land transport and services.
Different situations in Asian markets
In the Asian stock markets, things were more comfortable in the core
of China, as the Shanghai Composite Index showed 0.3% stronger.
The Shenzhen index closed hard, and the start-up sector of ChiNet fell by 0.9%.
Steel and biotechnology inventories provided themselves at reduced prices.
However, main commodity inventories were also weak,
as regulators in China wanted to tighten price controls in the raw materials sector.
In Hong Kong, the HSI index rose significantly by 0.9% supported by
surcharges in the technology and consumer sectors.
On the other hand, the Kospi index in South Korea turned red.
In Sydney, the S&p/ASX-200- index retreated by 0.3% – burdened by the iron ore sector.
In Wellington, New Zealand, the NZX-50 index closed 0.1% higher with an interest rate
decision made by the Central Bank.
The country confirmed its current interest rate level, but it promised some
increases in the third quarter of 2022.
Oil is retreating