Oil market focuses on the epidemiological situation in India and loses yesterday’s gains.. Negative dealings in Europe

Oil market focuses on the epidemiological situation in India and loses yesterday’s gains.. Negative dealings in Europe:

Oil ignored the Colonial accident, and the market focused on the epidemiological situation in India,
retreating again after the support it received yesterday.

On the scope of global stock exchanges, it seems that the situation is negative in Europe,
as this negative situation has been spread to Japan, Sydney, and Seoul.

Through the following lines, Evest deals with all the details associated with this.

Oil ignores “Colonial” fears and retreats again

Today, oil prices slightly fell in early dealings, after rising well yesterday.

This came amid fears of long-term disruption of the largest pipeline system in the United States,
while the Coronavirus crisis in India showed little signs of regression.

Today’s morning, the price of a Brent North Sea barrel has reached $67.72.

That was 60 cents less than it was yesterday.

The United States West Texas Intermediate barrel fell by 55 cents to record $64.37.

The decline in prices was driven by lower production of some refineries and declining demand for crude oil after an electronic attack on Friday for the Colonial Pipeline, one of the largest oil pipelines in the United States of America.

According to the operator

According to the operator, the US oil pipeline that was disrupted after an electronic attack must be largely restarted by the end of the week.

The failure of the pipeline,
through which much of the oil supply passes to the east coast of the United States,
only led to higher prices in the oil market yesterday.

However, longer disruptions are likely to lead to bottlenecks in the supply of petrol, gasoline, and diesel.

US President Joe Biden

Yesterday, in a statement at the White House, US President Joe Biden said that there was no evidence that Russia was responsible for the attack, but Russia was responsible for the “deal”.

Reduced production at these refineries led crude oil suppliers to reduce production.

Commodity experts at Commerzbank predict “any longer disruption of the pipeline will have far-reaching effects on the oil market – not only in the United States but also in Europe.

” For example, the United States also requires lost quantities of gasoline in Europe. As a result, gasoline prices could also rise in Europe.

French oil giant

On the other hand, Yesterday, French oil giant Total announced that it had reduced gasoline production at the Port Arthur refinery by 225,500 barrels due to the pipeline’s disruption.

Two of Saudi Arabia’s largest oil processing facilities and a partnership with Shell Refineries Motifs in Port Arthur,
which is capable of processing 600,000 barrels of oil a day, temporarily ceased their operations because of the attack.

A statement issued by the Colonial Pipeline on Saturday stated that some systems had been disconnected to contain the threat that activities on the pipeline had been temporarily interrupted and to influence the systems of some information technologies.

According to the last statement, the pipeline is expected to be operated again “significantly” by the end of the week.

the Colonial pipeline

Yesterday, the Colonial pipeline, which transports more than 2.5 million barrels of petrol, diesel, and aviation fuel a day,
announced that it works on a phased restart with a view to particularly restoring operational services by the end of the week.

The multi-product fuel line with a production capacity of 700,000 barrels a day between Greensboro,
North Carolina and Maryland have been manually operated for a limited period using existing inventories.

Oil declined amid weak morale, as Asian equities suffered from technology-driven sales and the market’s ignorance of concerns about the temporary closure of the Colonial pipeline, as the pipeline’s suspension didn’t appear to have a long-term effect.

At the same time, feelings were affected by the rapid deployment of Coronavirus infections in India, increasing calls to Prime Minister Narendra Moody’s government to close the world’s second-largest country in terms of population.

The World Health Organisation

The World Health Organisation (WhO) classified a Coronavirus strain,
which was first monitored in India last year as one of the most concerning species,
as some preliminary studies show that it is easily spread.

On the bullish side of crude oil, analysts expect data to show that US crude inventories fell by about 2.3 million barrels during the weekend on May 7, after a decrease of about 8 million barrels during the previous week, according to a poll by Reuters.

Petrol inventories are expected to retreat by 400.000 barrels,
according to the average of estimates of 6 analysts,
before reports from the US Petroleum Institute on Tuesday and the US Energy Information Management on Wednesday.

Today, OPEC is also expected to issue its monthly report on the oil market which includes April’s production figures.

Nikkei lost 900 points

Tokyo’s market has declined since the opening, following the fall of the US Nasdaq index yesterday,
after China’s producer prices rose (+6.8% in April over a year), above expectations.

The Nikkei index closed at 28.608.59 points at closing (- 909.75 points). For its part,
the broader Topix index lost 2.37% to record 1905.92 points.

This jump is partly explained by the low basis of comparison with last year when activity in China was paralyzed
by Covid-19, but it is also linked to higher commodity prices, which is an inflation factor.

China’s consumer price index rose by 0.9% during April in a year, compared to 0.4% in March.

Market participants are expecting to announce the same index in the United States of America,
which is expected to be announced tomorrow.

the US Federal Reserve

For now, the US Federal Reserve is making a reassuring speech: At the end of April,
it promised not to raise interest rates this year, even if inflation in the United States temporarily exceeds 2%.

In Asia and the Pacific, the main indicators significantly declined today.

Morgan Stanley Capital International MSCI ASIA, excluding the Japanese stock market,
stooped at 1.63% to record 683.86 points.

Sydney fell by 1.06 %, and a loss of 1.19% was recorded in Seoul.

On the other hand, the Shanghai index rose by 0.45%, while the Shenzhen index rose by 0.40% an hour before closing.

For its part, the Hang Seng Index in Hong Kong retreated by 1.95% 2 hours before the closure.

Expectations for a negative opening in Europe

Analysts expect the FTSE – 100 index in London to decline by the amount of 91 points, the DAX – 30 index in Frankfurt to fall by 200 points, the CAC – 40 index in Paris by 74 points, and the FTSE MIB index in Milan by 267 points, after considering pre-trading indicators.

Oil market focuses on the epidemiological situation