Oil is targeting $70.. Stimulus package keeps market up to date

Oil is targeting $70: Oil returned had returned its retreating at the end of yesterday’s session
after it was doing well at the beginning of the day.

Today, it regains gains and is targeting the level of $ 70 a barrel.

On the level of economic developments, talking of the US stimulus package is still the foundation as it is almost affecting all of the markets.

In this report, Evest is following upmarket developments today, transmitting them directly and exclusively to you.

Oil prices are rising again but they remain below $70

Today, oil prices steadily rose as the cost of May futures for Brent crude on the London Futures Exchange is $ 68.83 a barrel.

This is higher by about $ 0.59 or (0.86%) than yesterday’s closing price.

As a result of Monday’s trading, these contracts fell by $1.12 or (1.61%) to reach $68.24 a barrel but during the session,
prices reached $ 71.38 a barrel, which is the highest level since January 2020.

futures contracts

On other hand, futures contracts of West Texas Intermediate for April’s delivery in the New York Trading Stock Exchange (NEMEX) reached $ 65.54 a barrel which is higher by $0.49 or (0.75%) than the level of yesterday’s market closing.

These contracts were fallen by $ 1.04 or (-1.75%) to record $ 65.05 a barrel,
after rising to $ 67.98 a barrel which is the highest level since October 2018.

Support for the oil market is continuing by OPEC’s decisions to abandon an increase in oil production during April by 500,000 barrels a day. At the same time, Saudi Arabia added its voluntary limitations of 1 million barrels a day for another month.

It also promised to return these quantities to market in time.

Russia and Kazakhstan again got an exception and they may increase production in April.

Experts say that OPEC’s decision may refer to the intention of members of the organization to continue reducing the size of reserves.

Investors also expressed their optimism of statistics which indicated an increase in oil imports to China by 4.1 %,
to reach 89.57 million tons during the period from January to February 2021.

US Senate adopted an economic support package

Meanwhile, US Senate adopted an economic support package worth $ 1.9 trillion which was proposed by President Joe Biden.

50 senators voted in favor of the package compared to 49 against it.

During considering bell, a number of amendments have been made.

Now, it will be returned to the House of Representatives to be finally voted.

Observers believe that voting may be done this week.

Increasing expectations for recovery of the global economy after Senate approval of a $1.9 trillion stimulus package by the United States which is the largest oil consumer in the world, has an effective role in the rising of prices.

The US Treasury Secretary

Yesterday, US Treasury Secretary, Janet Yellen said that the support package would provide sufficient resources
to revive the country’s economy and it also would help to be returned to full employment next year.

Last week, forecasts strengthened a decrease in US commercial crude oil inventories to be permitted
that demand in the country has increased and supported the upward trend of prices.

Today, oil stock data of the US Petroleum Institute will be issued.

Tomorrow, official data from US Energy Administration will be released.

Increasing in value of the US dollar against other currencies, to a certain extent will limit the high prices
of crude oil-related to the US dollar.

Regarding oil shipments

Regarding oil shipments, fears of lack of supplies following attacks on the port of Ras Tanura
and Saudi Aramco installations which is one of the world’s largest ports, limit the upward trend of prices.

Yesterday, Brent oil barrel rose to $ 71.38, as Iran-backed Houthis attacks in Yemen on oil ports
and facilities in Saudi Arabia which are the world’s largest oil exporter led to an increase in geopolitical tension in the region.

While this figure was recorded as the highest level since January 2020,
Western Texas Intermediate recorded $ 67.98. This is the highest price since October 2018.

A good performance in Japan, Australia, and Hong Kong

The performance of Asian stock exchanges is varied today, as in Japan, the Nikkei index rose by 0.7%,
while the broader Topix index rose by 09%.

Both Shanghai Composite and CSI 300 indexes fell by 0.03%and 0.05% in a row.

On other hand, in Hong Kong, Hang Seng rose by 1.4%.

In South Korea, the Kospi index retreated by 0.9%, while in Australia S&P /ASX 200 index rose by 0.5%.

Singapore Stock Exchange also rose by 1.2%.

In South Korea, the Technology sector has fallen like most other places in the world.

Samsung shares fell by 1.2%, while the Sk Highnix index for chip-making reduced by 2.6%.

LG Electronics reflected its previous losses and rose by 1.1%.

Analysts in Mizuho Bank say that the Ten-year interest rate for Treasury bonds in the United States of America is the offender and this requires another revaluation.

When 2021 began, the interest rate for ten years was less than 1%, while now it is higher than 1.6%,
before settling at about 1.566% on Tuesday morning.

Stimulus Package supports Dow Jones… Nasdaq and Standard & Poor’s are in the negative zone

On Monday, US stock performance differed after investors were stimulated
for Senate’s approval of a new stimulus package.

Investors flow on shares that are in their best position to take advantage of the major return of the US economy.

These shares are privately included in the Dow Jones Industrial index.

Dow Jones index was traded up by 0.97% to record 31802.44 points.

Standard & Poor’s 500 fell by 0.54% to trade at 3821.35 points.

Nasdaq Composite also retreated by 2.41% to record 12609.16 points.