Oil continues to perform negatively.. and positive trading US and Europe

Oil continues to perform negatively

Oil continues to perform negatively.. and positive trading US and Europe

Oil continues to perform negatively.. and positive trading US and Europe: Oil tried to stabilize at the beginning of today’s Asian session
but was unable to do so as the market was exposed to many concerns that led to the decline of the dollar-denominated commodity
for the third session in a row since the beginning of the week. 

Evest follows the commodity trading market and relays to you the top news in the following report.

Oil declines for the third session in a row

Oil prices fell on Wednesday for the third session in a row.

The market is under pressure from concerns about the rapid spread of the new Delta strain of the Covid-19 coronavirus in Asian countries,
including China, and expectations of weak fuel demand.

Brent crude futures for October on the London ICE Futures Exchange fell by $0.02 (0.03%),
to $72.39 per barrel. Brent crude fell $0.48 (0.66 percent) to $72.41 per barrel on Tuesday.

September futures for West Texas Intermediate crude were cheaper in electronic trading on the New York Mercantile Exchange (NEMX)
by $0.21 (0.03%), to $70.35 per barrel.

During the previous session, the future fell by $0.7 (1%) to $70.56 per barrel.

This week’s growing demand is accelerating the increase in oil production

In the meantime, OPEC + countries began to face growing demand this week by accelerating the increase in oil production:
Since August 1st, production has increased by 400 thousand barrels per day.

This trend will continue until the current restrictions,
which currently stand at 5.8 million barrels per day, are terminated.

At the same time, OPEC + ministers will continue to meet every month to confirm their assessment
of market conditions and the adequacy of the scenario adopted.

The decline in oil prices in the market since the beginning of the week is due to the spread of the coronavirus Delta variant
and concerns about new mobility restrictions.

In addition, industry morale data in the United States and China were disappointing.

Drone attack

A drone attack on an oil tanker off the coast of Amman, which occurred at the end of July, has failed to raise oil prices for the time being. 

NATO called on Iran to comply with its international obligations.

A spokesman for NATO said on Tuesday that NATO countries, Great Britain, the United States,
and Romania had reached the conclusion that Iran was likely to be responsible for the incident.

The drone attack is considered explosive because it occurred on an important maritime trade route.

lg Ships sailing between the Persian Gulf and the countries of the European Union, among others, pass the coast of Oman.

Delta coronavirus in china

On the other hand, there is growing concern that China – a major global oil importer –
may reduce its purchases during the next wave of Covid-19 in the country. 

The Delta type of coronavirus is spreading in China, which has led the Chinese authorities to take measures
and impose restrictions in combating this pathogen by increasing demand for fuel and limiting its import.

The city of Wuhan, central China, ordered a thorough screening of all its 11 million inhabitants for Covid-19
on Tuesday after discovering the first new local infections of coronavirus there in more than a year.

The city’s medical services reported on Monday that seven migrant workers had been infected.

These are the first new local cases recorded in Wuhan since the city managed to contain the first wave of the pandemic after an unprecedented lockdown that lasted for more than two months in the spring of 2020.

And the Delta coronary type was discovered in China in approximately 32 provinces in just two weeks.

At least 46 cities have advised their inhabitants not to travel unless absolutely necessary.

Mobility restrictions in this world’s leading economy pose a threat to demand.

Oil prices under pressure

According to experts, oil prices will remain under pressure at least until more information is available
on the spread of the coronavirus in the country.

With the rising spreading risks of Delta, analysts are already reviewing their expectations for global economic growth.

At the same time, oil prices may be supported in the short term by United States inventory
data on this commodity and its products.

The US Petroleum Institute (API) is expected to announce in its latest report
that US crude oil inventories fell by 879000 barrels last week.

Gasoline inventories fell by as much as 5.75 million barrels during this time.

The Department of Energy will release official United States fuel inventory figures later today, Wednesday. 

West Texas Intermediate crude oil on the New York Stock Exchange reportedly lost 4.6 percent in the first two meetings this week. 

Collective hikes for European indices in the morning session

Major European stock markets are expected to rise slightly on Wednesday at the opening,
following Wall Street, of strong corporate releases to offset concerns about the spread of the Delta variant
of the coronavirus and regulatory pressures in China.

Futures rose by 0.25% for the Dax index in Frankfurt, 0.21% for the FTSE index in London, and 0.26% for the EuroStockx50 index.

The first indices also indicate a rise of 0.22% in the Parisian CAC40 index at the opening.

positive performance in Wall Street.. The jobs report had a key role

On Wall Street, the S & P 500 index ended on a record close on Tuesday night,
backed by the special advance of Apple (+ 1.26%) and Eli Lily (+ 3.8%) stocks despite a decline in video games amid concerns about Beijing’s regulation.

Investors, who are still very interested in the evolution of the pandemic under the influence of a highly contagious Delta variant,
will follow Tuesday’s PMI and ISM activity indices in Europe and the United States for the services sector.

Another statistic that markets are eagerly awaiting is the publication of the ADP report at 12:15 GMT on job creation in July in the US,
in preparation for the official report to be published on Friday.

The evolution of the labor market on the other side of the Atlantic is a key factor in the course of the Federal Reserve’s monetary policy.

Last week, Central Bank President Jerome Powell said he wanted to see “strong job numbers” before he started cutting back on monthly asset purchases.

The United States index futures now indicate an unaltered opening,
but the trend may change as economic indices are issued before the bell.

Tuesday evening, the Dow Jones index rose 0.80% to 35116.40 points.

Standard & Poor’s rose 0.82% to 4423.15 points and the Nasdaq Composite rose 0.55% to 14761.30 points.

Oil continues to perform negatively.. and positive trading US and Europe

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