Saudi attack supports oil prices and exchanges
Saudi attack supports oil prices and exchanges interact with Senate’s passing for a relief package
Saudi attack supports oil prices: Senate agreed to pass a US $ 1.9 trillion stimulus package by only plus one vote,
prompting all markets to interact with this approval in tradings of the start of the week.
According to some Chinese data, the world is now preparing to erase the effects of Coronavirus
and resume economic recovery at a steady pace, especially after the success of vaccines
in reducing the number of infections around the world on a daily basis.
Evest is following up on the effects of this decision on different markets through the following lines:
Oil is flying at its highest levels for more than two years and a half
Today, the price of a barrel of North Sea Brent has reached its highest level in 14 months.
Price rose by more than 2% to record $ 71.38,
while West Texas Intermediate crude also rose by more than 2% to reach $ 67.98.
This is the highest level in two years and a half.
Price jump came because of reports from Saudi Arabia
about an unmanned offensive attack on an oil production facility.
This strengthens concerns about the impact on oil deliveries.
The Department of Energy in the Kingdom of Saudi Arabia
Department of Energy in the Kingdom of Saudi Arabia said that a storage tank in Ras Tanura
on the Arabian, Gulf Coast was attacked by an unmanned plane on Sunday.
This attack was repeated.
However, it seems that production was not affected.
Houthis rebels in Yemen announced their responsibility for the attack.
On Sunday, the group’s statement said that military targets were also attacked
in some cities such as Dammam and Jazan.
It was said that 14 unmanned planes and 8 ballistic missiles were launched on “Saudi heart”.
For his part, a military alliance led by Saudi Arabia announced that 12 aircraft
had been obstructed during civilian targets.
In addition, two missiles that were supposed to hit Jazan had been obstructed.
Oil load station
There is an important oil load station on Peninsula in Arabian Gulf.
It can export about 6.5 million barrels a day – nearly 7% of global oil demand-.
This makes it one of the best-protected facilities in the world.
The attack on the Saudi oil facility is the most dangerous since a major processing facility
and 2 oilfields were exposed to fire in September 2019,
as production was stopped for about a month during that period.
On other hand, Brent and West Texas Intermediate prices rose for the fourth session in a row,
after OPEC and its allies had decided to keep production cuts largely unchanged in April.
Chinese crude oil
Chinese crude oil shipments annually rose by 4.1% during the first 2 months of 2021,
after major importers in the world expanded their refining capacity,
besides a continuing increase in demand for fuel.
Despite the rapid rise in crude oil prices,
the Saudi oil minister expressed his doubts about the recovery of demand.
India’s energy minister
India’s energy minister, the third-largest importer in the world said that the rising prices
could threaten recovery led by consumption in some countries.
On Friday, Baker Hughes Energy Services Company announced that high prices
pushed US energy companies to add oil and natural gas platforms for the second week in a row.
Negative trading in most Asian stock exchanges…
Wall Street may continue rising
Shares in Asian stock exchanges retreated after US Senate approved a motivating law of $1.9 trillion,
although the Australian market was able to achieve modest gains.
Meanwhile, positive economic data in the United States
and China is good for the recovery of the global economy.
Tokyo Securities Exchange
Today, Tokyo Securities Exchange has declined, as initial momentum gave away to further fears regarding US bond revenues, especially after positive indicators in the United States and China.
Leading Nikkei index reduced by 0.42% to record 28,743.25 points after earning more than 1%
at the beginning of the session.
The broader Topix index fell by 0.14% to reach 1893.58 points.
For the first time, investors in Tokyo have welcomed the best recruitment figures in the United States
during February which was published on Friday, in addition,
to increase over expectations for Chinese exports during the period from January to February,
according to statements issued by Beijing this week.
The trend has later deteriorated, as the market began to fear that the new support plan of $1.9 trillion
which President Joe Biden wanted and was approved by the Senate on Saturday,
would exacerbate rising bond revenues in addition to inflation’s dangers.
In Asia, both the Hang Seng index in Hong Kong and the Shanghai Chinese Composite index
were negatively traded at the end of trading,
while the Australian index closed in a rising of about 28.60 points or 0.41%, to trade at 6971.60.
In Europe, at the beginning of stock exchange tradings, the DAX index is expected to begin rising.
This is according to accounts of banks and brokerage firms.
The main index fell by 1%, to record 13920 points on Friday despite encouraging Us labor market data.
For its part, Wall Street positively closed at the end of the week.
With a slight decline in bond yields,
stock markets were also recovered and turned to be positive again.
An unexpected strong increase in employment is witnessing a recovery in the US economy.
At the same time, fears of inflation and bond revenues which recently, sharply rose led to further rise.
According to Reuters
According to Reuters, JP Morgan in a note said: “with passing relief package by Senate,
we expect that growth momentum may accelerate and we also expect global GDP growth of about 7.5%,
on an annual basis during the middle quarters of the year.