The Federal Reserve assures investors.. Oil continues to rise
The Federal Reserve assures investors.. Oil continues to rise
The Federal Reserve assures investors.. Oil continues to rise: Oil continued to rise today,
with a number of factors supporting it to try to reach new highs.
Evest follows developments in the commodity trading markets scene and relays them to you in the following lines.
Several factors supporting oil prices recovery
Oil prices rose on Wednesday, owing to the falling U.S. inventories and the steady economic recovery in countries – the main consumers of raw materials.
The price of London Futures Exchange Brent crude futures in August reached $75.27 a barrel, $0.46 (0.61%) higher than the closing price of the previous session.
The price of West Texas Intermediate crude futures in July in electronic trading on the New York Mercantile Exchange (NYSE) increased by $0.35 (0.48%) to $73.2 per barrel.
The initial benchmark trading ended at $74.81 and $72.85 respectively.
The American Petroleum Institute said the day before that U.S. oil inventories had declined 7.2 million barrels in the week ending June 18, with a projected decrease of 3.625 million barrels.
Meanwhile, the country’s gasoline reserves increased by 959 thousand barrels, and distillation output by 992 thousand barrels.
The American Petroleum Institute said reserves at a major storage hub in Cushing had declined last week, while the gasoline sector had increased.
For its part, the Energy Information Administration is expected to provide data on Wednesday, reducing reserves by 3.5 million barrels, according to a Bloomberg study.
Demand for fuel is rising due to major markets, including the United States and China, which continued to recover after COVID-19.
According to media reports
According to media reports, OPEC + members have been discussing a gradual increase in oil production since August.
However, no decision has yet been taken on the exact size, and the same meeting will take place on 1 July.
Meanwhile, Iran has said that nuclear talks with world powers may continue after August and that a possible increase in fuel supplies will be postponed.
The nuclear agreement with Iran may fail, encouraging traders to purchase oil futures.
Ibrahim Raissi, who was elected President of Iran on June 18, confirmed at the first press conference that he was not prepared to negotiate with the United States until it fulfilled its commitments.
The rise in oil prices
The rise in oil prices was, therefore, supported by the suspension of negotiations on the nuclear deal between the United States and Iran,
and the increase in demand for oil, as well as the weakness of the U.S. Dollar, and by signs of a new fall in U.S. Stocks, which strengthening the bullish outlook.
Meanwhile, demand recovery in Asia remains uneven, with improvements in India and Thailand, for example, to offset poor performance elsewhere.
On the other hand, markets are awaiting the decision to exit next week’s meeting on post-July production policy
for the Organization of Petroleum Exporting Countries (OPEC) and the OPEC + Group,
which is made up of some non-OPEC producing countries.
At its meeting on April 1, the group decided to gradually increase daily oil production for the months of May, June, and July.
At the OPEC+ group meeting to be held on July 1, production is expected to continue to increase due to the recovery in oil demand and prices.
The Japanese stock exchange is stable
The Tokyo Stock Exchange temporarily stopped on Wednesday, recovering from a roller coaster in the previous two sessions,
after panicking on Monday and recovering sharply the next day after reassuring about U.S. monetary policy.
The leading Nikkei index finished close to balance (-0.03% to 28874.89 points) after gaining more than 3%
the day before and reversed almost all of its losses on Monday.
The broad Topix index fell 0.53 percent to 1949.14 points.
China’s Shanghai Composite Index rose 0.2%, and the Hong Kong Hang Seng Index rose 1.8%.
United States stock indices rise and reserve meeting results
U.S. stock indexes rose 0.2-0.8٪ on Tuesday, while the Nasdaq closed 0.8 percent higher, trading at a new record.
Investors have evaluated the statements of U.S. Federal Reserve System Chairman Jerome Powell and other representatives of the regulator.
U.S. Federal Reserve Chairman Jerome Powell’s congressional hearing on Tuesday came as no surprise, as his speech,
which eased financial market concerns, was released in advance the day before.
Mr. Powell calmed financial markets by repeating that the current sharp acceleration in inflation in the United States
was temporary according to the Federal Reserve and that the latter would continue to support the recovery
of the American economy through appropriate monetary policy as well.
U.S. Federal Reserve Chairman
U.S. Federal Reserve Chairman, Jerome Powell, brings good news to investors.
The day before, he had confirmed the view that inflationary pressures would be temporary even after the marked price hike in recent months.
Adding: that the Fed would wait patiently and monitor the situation before raising the cost of borrowing.
The New York Fed Bank President, John Williams, Federal Reserve Bank of New York President John Williams added positively to the market,
noting that discussions about price hikes are still “far ahead.”
Speaking to the U.S. Congress on Tuesday, Powell reiterated his view that the country’s inflation acceleration is likely to be temporary,
indicating that the U.S. Central Bank will continue to support the economy.
In a speech Tuesday before the House Coronavirus Subcommittee, Powell said the U.S. economy is showing steady improvement.
U.S. employment growth will rise
Powell said U.S. employment growth will rise in the coming months and inflationary pressures will decline
as the U.S. economy continues to recover from the COVID-19 pandemic.
He said that at the height of the crisis, the Fed’s lending programs had “saved more than $2 trillion in funding,”
which had helped reduce job losses in companies, non-profit organizations, and local governments.
The New York Federal Reserve Bank President, John Williams, New York Federal Reserve Bank President John Williams