Oil gets support due to the Colonial accident

Oil gets support due to the Colonial accident

Oil gets support due to the Colonial accident

Oil gets support due to the Colonial accident.. Positive performance for some Asian and European stock exchanges: 

Today, the news is accelerating with the start of the week of trading in global stock exchanges,
as the oil market has begun to rise at an average rate,
thanks to the disruption of the largest oil pipeline in the United States of America as a result of an electronic attack,
at a time when sentiment is being exacerbated by India’s continuing dire epidemiological situation.


Despite this, this attack supports the decline in oil supply which means that demand
will be more than supply which by its turn supports prices to rise.


Evest is following this up with details in the coming lines as well as a brief presentation
of the world exchanges’ performance on the first day of trading this week.


Oil is rising with the support of the closure of one of America’s largest oil pipelines

Oil prices slightly rose at the beginning of the new week,
and one of the reasons may be the closure of the largest Petroleum pipelines in the United States.


The US West Texas Intermediate crude contract for June delivery is traded at $65.32.

This is 42 cents or 0.65% more than it was on Friday (May 7) at the end of trading
on the New York Stock Exchange for goods.


On Friday, the contract gained 19 cents or about 0.3%,
and closed at $64.90 a barrel. In general, West Texas Intermediate crude has risen by about 2.1% during last week.


July contract for the Brent North Sea oil contract recorded an increase of 49 cents,
or 0.72%, at a price of $68.77 a barrel.


Rising in prices was driven by growing concerns about the fragility of the country’s
energy infrastructure after one of the US largest pipelines was temporarily shut down
on Friday because of an electronic attack.


In such electronic attacks, harmful software encrypts data
on computers and demands money to issue them.

The Colonial pipeline

The Colonial pipeline essentially connects refineries in the Gulf of Mexico
with the Southern and Eastern United States of America. Gasoline, diesel,
and heating oil are transported through the product pipeline,by about 2.5 million barrels a day.

The pipeline provides fuel to over 50 million Americans and covers about 45%
of the fuel consumption on the east coast of the United States of America.


In a statement issued by the pipeline, it was reported that some systems had already been cut off without contact to contain the threat that activities in the pipeline had been temporarily interrupted and influenced the systems of some information technologies.


Yesterday, in a statement, the company stated that the main fuel transmission lines remain closed,
but that some secondary sidelines between the station and the transport points have been returned to their normal cases.


Experts point out that this pre-summer attack when using vehicles on the pipeline,
which transports approximately 2.5 million of fuel a day,
could cause sudden increases in fuel prices.

So, the country’s energy infrastructure must be strengthened against such attacks.

The United States declared a regional emergency

The United States declared a regional emergency due to the suspension of the Colonial Pipeline,
the largest fuel carrier in the country.

This was in a statement issued by the United States Department of Transportation.


States such as Alabama, Arkansas, the District of Columbia, Delaware, Florida, Georgia, Kentucky,
Louisiana, Mary Land, Mississippi, New Jersey, New York, North Carolina,
and Tennessee has been affected by the outage.

Decisions of easing restrictions

In addition, current decisions of easing restrictions, given the improved epidemiological situation in the United States of America
and some European countries, support expectations that there will be an increase in oil demand during the coming summer,
which by its turn, contributes to an increase in oil demand.


The emergency which has been in place since October 25,
ended because of the epidemic in Spain.

In Belgium, restaurants, cafes, and bars, which have been closed since October
due to the epidemic, have been reopened with fewer cases and accelerated vaccination.


On the other hand, fears that Covid-19 cases in some countries, particularly India, the third-largest oil consumer in the world,
will have a negative effect on the demand for oil which by its turn will continue to affect prices.


Early gains in most of Europe..DAX is down

The Portuguese Stock Exchange began Monday’s session to trade on positive ground,
as the main national stock index (PSI 2000) added 0.66% to record 51,822.97 points.


Among other major European markets, the British FTSE index rose by 0.22%,
while the Spanish IBEX 35 index rose by 0.45%.

The German DAX index fell by 0.04%, and the French CAC 40 index declined by 0.09%.


Investors are waiting for the European Union Investor Confidence Index (Sentex),
pending the intervention of Chicago Charles Evans, Fed President, while the quarterly reports of Brimbo,
PBS, Gemma, Viramilano, and Rizanamiento in Piazza Afari
are being determined and the Webweed voucher will be issued.


Positive dealings in Tokyo, Seoul, and Sydney… Negative ones in Shanghai and Hong Kong


The positive momentum spread to Asia, specifically Japan,
as the Nikkei index of the Tokyo Stock Exchange recorded an increase of more than 0.5%at the end of the session.

The upward trajectory of stock markets is mainly fed through an exceptional results season.

Markets retain their highest levels, supported by the issuance of corporate results.

It has been observed that about 85% of US companies reported
better results than expected with a large number of surprises.


Chinese indicators varied, as Hong Kong’s Hang Seng Index slightly fell.

Eyes are towards the Sydney Stock Exchange, which closed at its highest level at all,
thanks to the strong rises in stocks of the mining sector.


Seoul recorded a rise of 1.75% and Sydney also recorded a rise of 1.3%, while Taiwan,
Shanghai and Hong Kong retreated to 0.29%, 0.16%and 0.25% in a row.

 As for, Mumbai rose by 0.72%.


Oil gets support due to the Colonial accident

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