Oil rises for the third consecutive session… Nikkei ends trading in the positive zone
Oil rises for the third consecutive session.. Nikkei ends trading in the positive zone:
The week is coming to an end, and oil is still recovering for the third consecutive session,
as secure prospects for economic recovery still, dominate the markets.
On the stock market, the indices appear to be mixed in Asia, and this is how it is in the United States.
Evest follows all developments on the economic scene and relays them directly to you.
Oil rises for the third consecutive session
Oil prices continue to rise for the third consecutive day today, Thursday,
amid expectations of increased demand for fuel, especially in the United States.
Another factor supporting the price of black gold is the fact that large-scale producers adhere to production discipline and supply the market with agreed quantities.
US West Texas Intermediate crude futures for July delivery were at $69.26.
That was 43 cents or 0.62% more than on Wednesday (June 2) at the close of trading on the New York Mercantile Exchange.
West Texas Intermediate crude was $69.32 previously.
The contract rose $1.11 or about 1.6 on Wednesday and closed at $68.83 per barrel,
the highest closing price for West Texas Intermediate crude since October 2018.
West Texas Intermediate oil prices have risen to their highest levels since 2018 thanks to increased Western demand and an optimistic OPEC + market outlook assessment.
On Tuesday, the price of the July contract for West Texas Intermediate rose by 2.1%.
North Sea Brent crude futures for August delivery rose by more than 52 cents, or 0.73%, after earlier hitting $71.87 a barrel.
Experts agree that demand for oil will exceed supply in the second half of 2021, which has also supported current price increases.
According to OPEC
According to OPEC + projections, oil demand is expected to reach 99.8 million barrels a day at the end of the year,
compared to 97.6 million barrels a day.
According to data provided by Descartes Laboratories, demand for gasoline in the United States rose to its highest level
last week since the onset of the pandemic, while traffic on United Kingdom roads was for the first time higher than pre-pandemic levels.
Market expectations suggest that global demand for oil will exceed the supply of oil in the second half of the year, mainly due to increased demand in Europe, particularly the United Kingdom, where the restrictions caused by the Covid-19 virus have been lifted, as well as in the United States China, the world’s two largest oil consumers.
The fact that the United States commercial crude oil inventories were predicted to be falling also reinforced the idea of increasing demand in the country, as well as the rise in prices.
According to the American Petroleum Institute projections
According to the American Petroleum Institute projections, U.S. commercial crude oil inventories fell by 5 million and 360 thousand
barrels last week compared to the previous week.
The market expects stocks to fall by 2 million and 114 thousand barrels.
All this takes place immediately after the OPEC + meeting, during which Saudi Energy Minister Prince Abdulaziz bin Salman said that consumption figures show clear signs of improvement, a condition reflected in the decision of the Producers Alliance to move forward without delay in the previously agreed road map.
At the last OPEC meeting, the planned scale-up programs were confirmed until next July, announced at the beginning of April,
when producers must gradually return to the market 2 million barrels a day.
In its statement, OPEC + acknowledged “the continued strengthening of market fundamentals,
with oil demand showing clear signs of improvement” and the organization is supposed to hold its next meeting on July 1st.
The increase in production in July is a valid decision; following a marked decline in the structure of the oil market
is an indication and indicates expectations of a short supply in the market.
The situation in Iran is also important, with news on the market showing how a renewed nuclear agreement between Tehran and world powers
may be less imminent than was expected just a few days ago.
Contrary to what is happening in the West, the spread of Covid-19 continues to pose a threat in many regions of Asia,
primarily India and threatens the recovery of global demand for black gold, especially in the second half of the year.
Indicator variation in Asia
Tokyo Stock Exchange closed high on Thursday despite the start of the session in the Red Zone,
where optimism arising from the advance of the Covid – 19 vaccination campaign in Japan notably supported the Japanese market.
The main Nikkei index rose 0.39% to 29058.11 points and the Topix expanded index rose 0.84% to 1958.70 points.
According to Bloomberg analysts, “Japanese stocks were slightly corrected last month and are recovering slightly now.
The deployment of vaccines in the country supports investor morale, which makes them optimistic as summer approaches. “
In Hong Kong, the Hang Seng index fell by 0.97% around 6:40 GMT. Shanghai and Shenzhen also declined.
US indicators rose 0.1%.
In the United States, stock indicators rose 0.1% on Wednesday and closed close to record levels.
The U.S. economy grew at a moderate pace from early April to late May, with higher growth rates
than at the beginning of the year, according to a regional survey released Wednesday by the Philadelphia Federal Reserve (FRS).
Philadelphia Federal Reserve Bank (FRB) President Patrick Harker said on Wednesday that it was time
to consider the timing of the termination of the Fed’s asset buyback program.
Federal Reserve Board member Lil Brainard said on Tuesday that the United States is moving closer to the idea of a regulator of full employment and inflation targets,
but the depth of the problems still requires the central bank to stick to lax monetary policy.
Minneapolis Federal Reserve Bank President Neil Kashkari, in turn, spoke out against those who believe that the Fed and large-scale
government incentives are paving the way for a serious problem, accelerated inflation.
Oil rises for the third consecutive session