Oil corrects positively after falling sharply yesterday

Oil corrects positively after falling sharply yesterday

Oil corrects positively after falling sharply yesterday and negative dynamics in Wall Street and Asia

The leader of the Russian banking market and its largest private player have fallen under the sanctions of the US embargo

Evest follows market developments in the following report

 

Topic

New sanctions package from the United States and Britain against Russia

Negative mood dominates the market

Expectations from the Federal Reserve and the European Central Bank

US stock indices are in the Red Zone

Negative dynamics also in Asia

Oil price correction movement after a significant decline

 

 

New sanctions package from the United States and Britain against Russia

The White House announced the inclusion of Sberbank and AlphaBank in the SDN list
which will freeze all their assets related to the U.S. financial system and prevent American residents from dealing with them

The general license published by OFAC allows transactions with Sberbank to be completed until April 13
and a similar license is valid for Alpha Bank until May 6

And the White House also announced another decision – a complete embargo on new investments in the Russian Federation
by presidential decree US authorities expect the move will further isolate Russia from the global economy

On Wednesday, Britain also imposed sanctions on a group of businessmen and banks from Russia
(Sberbank and Credit Bank of Moscow)
The US Treasury has imposed sanctions on the Russian Prime Minister, Russian Finance Minister Anton Siluanov
Moscow Mayor Sergei Sobyanin, and Saint Petersburg Governor Alexander Beglov

The head of European diplomacy, Josep Burrell, told reporters that a ban on oil purchases in Russia had not been included
in the fifth sanctions package to be discussed on Thursday

 

Name artical Oil corrects positively after falling sharply yesterday

 

 

Negative mood dominates the market

Expectations of an active tightening of monetary policy in the United States reinforced the negative mood in world markets

It is boosted by speeches from Federal Reserve representatives, as well as the minutes of a March meeting of the U.S. regulator
As a result, markets are stronger in predicting that the Fed will raise the price by 50 basis points at the next meeting

Furthermore, within 2022, the regulator could raise the price at each meeting
taking into account the different steps, up to 75 basis points
The current situation is caused by continued high inflation
and the Fed will have to consider raising the interest rate quickly to combat it 

In addition, in May, the Fed will begin to shrink the balance sheet, which
according to the regulator’s representatives, will be more active than in previous cycles
resulting in a sharp flow of liquidity from markets

China’s coronavirus situation is also an additional negative factor
The country’s authorities have to impose strict quarantine restrictions in certain areas in an effort to stop the spread of the Omicron strain
The current situation is confusing investors’ expectations about the dynamics of the Chinese economy
which also reduces investors’ interest in risky assets

Expectations from the Federal Reserve and the European Central Bank

Today, Thursday, investors focus on publishing the minutes of the last meeting of the European Central Bank
where investors will look for indicators of European regulator action on rising inflation in the eurozone
as well as unemployment data in the United States

On Thursday, investors will focus on the speeches of individual members of the Federal Reserve
who, through verbal intervention, can influence markets
Most likely, they will announce the need to increase tightening U.S. monetary policy to fight inflation
which markets will view negatively

 

 

Name artical Oil corrects positively after falling sharply yesterday

 

 

 

US stock indices are in the Red Zone

US stock indices declined by 0.4-2.2% on Wednesday, led by the Nasdaq index
with rising government bond yields, falling technology stock prices
and cues from the Federal Reserve

According to the minutes of the March meeting of the Federal Reserve Board
leaders of regulators indicated their willingness to start cutting assets on the balance sheet
, which reached $8.9 trillion, by $95 billion a month
In the meantime, in 2017-2019, the central bank sold securities at a more moderate pace – at $50 billion per month

In addition, many Fed members believe that raising the interest rate by 50 basis points
once in one or more future meetings would be justified if inflation in the United States did not begin to fall

Earlier, Fed Board member Lil Brennard announced the need to cut US inflation, a 40-year record
, and suggested that the Fed could actually start reducing the volume of assets in its balance sheet at the May meeting
Previously, it took a more moderate stance on the issue of monetary tightening

Negative dynamics also in Asia

In Asia, the negative dynamics of stock indices prevailed on Thursday, and US stock futures stabilized

The Fed’s hard-line intentions make it harder for investors to make decisions under the conflict in Ukraine
the spread of the coronavirus in China, and rising inflation, according to MarketWatch

Industrial production in Germany increased by 0.2% in February compared to the previous month
, according to the country’s Federal Bureau of Statistics (Destatis)
Analysts expected no change, according to Trading Economics

 

 

 

 

Oil price correction movement after a significant decline

Prices in the oil market were corrected in the Asian session on Thursday, after a major decline the previous day on the back of data on an unexpected increase in U.S. inventories and information on plans to release raw materials from strategic reserves by IEA countries

Brent crude futures’ cost for June was $102.39 per barrel (+ 1.3% and -5.2٪ on Wednesday), and West Texas Intermediate crude for May was $97.43 per barrel (+ 1.3% and + -5.6% the previous day)

On Thursday, traders assessed the situation in China, where quarantine measures are being maintained to contain the spread of Covid-19. According to consulting firm Kpler, tankers of about 22 million barrels of oil from Russia, Iran and Venezuela have accumulated due to port restrictions off the coast of China

The previous day, IEA countries agreed to release 60 million barrels of strategic reserves in addition to the 180 million barrels the United States planned to provide

Data from the U.S. Department of Energy, published on Wednesday, showed an unexpected increase in the country’s oil inventories last week (by 2.42 million barrels) against a forecast of a decline of 1.85-2.8 million barrels

Inventories at the terminal in Cushing, Oklahoma, where oil traded on the NYMEX Stock Exchange is stored, rose by 1.7 million barrels
US oil production rose by 100 thousand barrels per day compared to last week – reaching 11.8 million barrels per day

 

Name artical Oil corrects positively after falling sharply yesterday

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