Oil is supported by OPEC and expectations of a recovery in demand.. 2021-04-28T18:30:54 Oil is supported by OPEC and expectations of a recovery in demand.. Asian indicators are green Oil is supported by OPEC and expectations of a recovery in demand: At its last meeting, OPEC recommended maintaining its decision taken this first month, to gradually increase production over the next two months, which led to support for oil prices to rise again after the crises which they recently witnessed as a result of the bad global epidemiological situation, particularly in Asia. At the same time, announcements for companies’ financial results continue to receive widespread attention among traders. Evest is following up with you all this and more on a daily basis, and it presents details in the following lines. OPEC’s decisions support oil prices amid a difficult epidemic atmosphere Today, oil prices rose, after OPEC Alliance Control Group recommended maintaining the April 1 decision to gradually increase production in May and July. June June futures price of Brent oil on London Futures Exchange recorded $ 66.08 a barrel, 0.32%higher than the closing price of the previous session. West Texas The price of West Texas Intermediate crude oil futures in June at electronic trading on the New York Mercantile Exchange (NYMEX), was $ 63.20 a barrel, 0.41% higher than the level of closing in the previous session. OPEC Oil prices rose after the OPEC + control group recommended commitment to plans to return 2.1 million barrels of crude oil daily to the market in three phases from May to July. This volume includes 1 million barrels a day, which Saudi Arabia voluntarily cut its production earlier. The Organisation of Petroleum Exporting Countries (OPEC) and OPEC Group, which consists of some oil-producing countries out of OPEC referred to a strong global economic recovery. OPEC countries hinted that the global economy is recovering and this recovery is expected to be accelerating during the second half of the year, at today’s 16 ministerial meetings, but with a surprise that began yesterday. This recovery is expected to be accelerated in the second half of the year during May and June. They decided to continue this plan to phase out daily oil production cuts for July. Reuters Analysts of Reuters said: “they seem to have looked at the situation in India and Brazil and decided that these are”real” risks, but now there is still a possibility of increased demand”. The rapid spread of the Covid-19 virus in India led to a halting in the rise in oil prices due to low fuel consumption and refining volume in the county, which is the world’s third-largest oil consumer. However, the market expects that sustained economic recovery in the United States and China will exceed this effect. Indian Ministry of Health According to the statement issued by the Indian Ministry of Health, 352,991 cases were monitored during the last 24 hours, while the total number of cases was about 18 million. The daily number of cases in the country was at its highest level ever around the world since April 22. On the other hand, the American Petroleum Institute stated that US oil inventories rose by 4.3 million barrels last week, while gasoline inventories declined by 1.3 million barrels and distillation products decreased by 2.4 million barrels. Today, official oil inventory data will be issued by the United States Energy Information Administration. Positive outlook from Goldman Sachs for oil and gold The American Goldman Sachs Bank expects a further 13.5% rise in raw materials in the coming 6 months, thanks to a reversal of restrictions due to the virus all over the world, and it also predicts low interest rates and a weaker dollar. Now, the bank expects that the price of a barrel of Brent oil will rise to record $80, while the price for a barrel of West Texas Intermediate oil will be $ 77 during that six-month period. The bank said: “We expect the biggest jump in oil demand in history, with an increase of 5.2 million barrels a day in the next 6 months”, citing the acceleration of vaccines in Europe and the freedom of travel movement. The bank added that the easing of international travel restrictions in May would witness global demand recovery for aviation fuel by 1.5 million barrels a day. The Bank expects $ 2,000 an ounce for gold in the coming 6 months. It said it is too early for Bitcoin to compete against gold to seek safe haven, adding that the 2 could coexist. The bank said: “while Bitcoin benefits from increased liquidity, it suffers from actual underutilization and a weak degree of environmental, social and governance, owing to its high energy consumption”. The bank added that such intensive use of energy makes the cryptocurrency vulnerable to losing its value store demand to a better-designed competitor. Although China will continue to play an important role in the demand for raw materials, the bank added that it is not expected to be the only major source of growth in the next decade. Positive tradings in Asian Exchanges Today, Asia was determined by moderately positive stock-index dynamics, as Japan’s Nikkei 225 index rose by 0.2%. Both China’s Shanghai Composite and Hong Kong’s Hang Seng indexes rose by 0.3%. Tokyo Stock Exchange Today, Tokyo Stock Exchange slightly rose, supported in particular by a weak yen, a favorable exchange rate move for Japanese-issued stocks, but caution prevailed before the end of the US Federal Reserve Board meeting. Today, official data showed a rise in retail sales in Japan by 5.2% in March compared to the same month last year. Compared to February, prices of retail sales rose by 1.2%. Experts predicted an average increase of 4.7% and 0.9% in a row. the United States Central Bank After the April 27-28 meeting, the United States Central Bank is likely to confirm that it intends to continue buying assets of the same size until “significant progress is made” in moving towards the targets of maximum employment and price stability goals. At the same time, experts who were interviewed by Bloomberg, believe that even before the end of this year, the Federal Reserve will declare plans to reduce monthly operations of gradual rebuying for assets as a part of the quantitative facilitation program, as the US economy quickly recovers from the crisis caused by the coronary virus pandemic. Now, experts expect an increase in the basic interest rates in the range of 0.0% to 0.25%annually, but not before 2023.