Oil declines and gold rises Negative dynamics in Asia and America

Oil declines and gold rises Negative dynamics in Asia and America

Oil declines and gold rises Negative dynamics in Asia and America

Oil declines and gold rises Negative dynamics in Asia and America :Oil has continued to decline today, despite the US Department of Energy announcing a decline in inventories,
but there is still pressure on prices due to news from the White House, specifically from Biden.

Evest follows market developments in the following report.


Oil continues to fall to the lowest level since October 7

West Texas Intermediate

Negative dynamics in Wall Street and Asia

US stock indices fell

Tesla stock price rose

Gold rises amid falling dollar and US Treasury yields



Oil continues to fall to the lowest level since October 7

Oil ended trading on Wednesday at the trough since early October and prices continue to fall.

The market continues to respond to reports that U.S. President Joe Biden’s administration is considering selling oil from the strategic reserve.

In the meantime, the possibility of a similar move by China was discussed, at a virtual summit with Chinese President Xi Jinping.

MarketWatch also notes that the oil market was not supported by data on the reduction of oil reserves in the United States last week.

Despite the optimistic report from the Department of Energy, the market reacted negatively, assessing the potential reaction from the Biden administration.

Biden’s administration has made it clear that it wants to reduce oil prices,
and the market is assessing the measures needed to contain prices given the very limited number of tools in its arsenal.

Brent crude futures for January on the London Futures Exchange fell on Thursday by $0.28 (0.35%), to $80 per barrel. 

On Wednesday, its price fell by $2.15 (2.6%) to $80.28 per barrel at closing, the lowest level since October 7.

West Texas Intermediate

West Texas Intermediate crude futures for December were reduced in electronic trading
on the New York Mercantile NYMEX Exchange in the morning by $0.67 (0.86%) – to $77.69 per barrel. 

Its price fell by $ 2.4 (3%), as a result of the previous session, ending today at $ 78.35 per barrel – at least since October 1st.

The United States Department of Energy said that oil reserves in the United States fell last week by 2.1 million barrels – up to 433 million barrels.

The gasoline reserves fell by 707 thousand barrels, and distillates rose by 824 thousand barrels.

Experts surveyed by Standard & Poor’s Global Platts projected an average decline of 2.5 million barrels in oil reserves,
and gasoline – 100 thousand barrels and distillates – by 1.3 million barrels.


Negative dynamics in Wall Street and Asia

Stock indices in Asia and the Pacific show negative dynamics on Thursday.

Japan’s Nikkei 225 fell by 0.83%, while China’s CSI300 is fell by 0.64%.
US S&P 500 futures are close to the previous day’s closing.

US stock indices fell by 0.3-0.6% at the close of Wednesday’s trading.

The Dow Jones Industrial Index fell 211.17 points (0.58%) to 35931.05 points on Wednesday.

The Standard & Poor’s 500 fell by 12.23 points (0.26%) to 4688.67.

The Nasdaq Composite Index fell 52.28 points (0.33%) to 15921.57 points at the end of trading.

US Secretary of the Treasury, Janet Yellen,
warned Congress that her department’s funds could run out after December 15, if lawmakers did not raise the national debt ceiling.

She explained that this deadline is directly related to the new commitments of the Treasury Department after the adoption of the US infrastructure spending bill.

The United States Department of Commerce said on Tuesday that the number of homes starting in October
in the US fell by 0.7% on a monthly basis to 1.52 million at an annual basis.

According to the revised data, the number of new buildings in September was 1.53 million, not 1,555 million as previously announced.

Experts predicted an increase in the number of new buildings compared to the level announced the previous month – up to 1.576 million.

US stock indices fell

US stock indices fell by 0.3-0.6% at the close of Wednesday’s trading.

Visa Inc’s shares topped the fall in quotations among the Dow Jones index components, which declined 4.7%. 

Amazon, the world’s largest online retailer, said it would no longer accept Visa credit cards in the UK as of next year due to high fees.

Additionally, stocks of Goldman Sachs Group declined by 2.9%, Merck & Co by 1.8% and Travelers Cos – by 1.6%.

Activision Blizzard stocks declined by 2.9٪. Following a protest involving more than 100 current and former employees of the US video game development company,
calling for CEO Bobby Kotik to resign after the Wall Street Journal reported on how he responded to sexual harassment complaints.

At the same time, Boeing Co’s stock rose by 0.4%. Wells Fargo analysts filed their recommendation with Buy.

This is a result of the company’s stock quotation growth as recently lagged behind those of the Standard & Poor’s 500 index – by about 30% since March.

Tesla stock price rose

Tesla’s stock price rose by 3.3%.

Electric Carmaker President Elon Musk sold stocks in the company for another $973 million on Tuesday,
continuing to reduce his stake for the seventh consecutive auction. 

He sold Tesla stocks for a total of $6.9 billion last week, and Monday – for $930 million.

Musk began a Twitter poll on November 8, promising to sell 10% of his stocks in Tesla if social network users vote for such a move.

Since then, it has already sold 8.16 million securities for $8.8 billion.

Gold rises amid falling dollar and US Treasury yields

On Thursday, gold prices rose with the dollar and U.S. bond yields declining from the highest level in three weeks, raising the appeal of alloys.

Spot gold rose 0.1 percent to $1869.45 an ounce after hitting an all-time high in more than five months on Tuesday.

US gold futures rose by 0.1 percent to $1871.50.

The dollar fell by 0.1 percent away from Wednesday’s 16-month peak. 

The weakening dollar reduces the cost of alloys for buyers with other currencies.

Yields on the benchmark 10-year US Treasury bonds rose slightly on Thursday but declined from a three-week high in the previous session,

reducing the opportunity cost for unpaid gold.


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