Oil is above $90 and positive trading in Asia

Oil is above $90 and positive trading in Asia despite the closure of China's exchanges

Oil is above $90 and positive trading in Asia despite the closure of China’s exchanges

Oil is above $90 and positive trading in Asia despite the closure of China’s exchanges: Oil rose to a 7-year high above $90 a barrel,
giving the commodity’s traders considerable optimism even amid geopolitical pressures that could affect it.

Evest follows market developments in the following report.


Oil break above $90 per barrel near 7 year highs

US-Russia discussions about the attack on Ukraine

US indices end the week higher after a 3-week decline

Positive trading in Asia and the Chinese exchanges are closed

Oil break above $90 per barrel near 7 year highs

Oil prices rose on Monday morning near 7-year highs.

The price of March Brent oil futures on the London Stock Exchange Futures is $91.02 per barrel on Monday,
$0.99 (1.1%) higher than the closing price of the previous session. 

As a result of Friday’s trading, these futures rose by $0.69 to $90.03 per barrel,
as the price rose to $91.7 per barrel during the auction for the first time since October 2014.

Brent crude rose to $90 per barrel for the first time since October 2014

Brent crude futures for March expire on Monday.

The cost of the more active traded April futures rose by $0.89 (1.01%) to $89.41 per barrel.

The price of West Texas Intermediate crude futures for March in electronic trading on the New York Mercantile Exchange (NYMEX) was $87.78 per barrel by this time,
$0.96 (1.11%) higher than the final value of the previous session.

The day before, these futures rose by $0.21 to $86.82 per barrel.

The prices of both types of oil rose for the sixth week in a row.

Since the beginning of January, its value has risen by about 16%,
while the growth rate may be the highest since February 2021.

According to analysts, the start of the week was strong due to concerns ,
over oil supply issues as well as ongoing geopolitical risks. 

In the meantime, market attention is shifting to the next OPEC + ministerial meeting.

Market participants are anticipating the meeting to be held on February 2,
to decide to continue the plan to increase oil production by 400 thousand barrels per day monthly in March.

Oil prices are likely to continue rising this week,
as Brent crude is believed to remain above $90 a barrel,
given the expectation that OPEC+ will maintain the current policy of gradually increasing production.

US Russia discussions about the attack on Ukraine

Pentagon chief, Lloyd Austin, said on Friday that the US administration,
is not yet clear whether Russia intends to attack Ukraine,

but it believes that Moscow is currently militarily equipped to carry out such an attack. 

Austin has also indicated that the United States does not rule out Russia taking “extremely provocative steps,
such as recognizing the independence of the territories separated from Ukraine.”

In the meantime, “conflict is not inevitable,” according to the Pentagon chief.

For his part, Secretary of the Security Council of the Russian Federation, Nikolai Patrushev

said that Russia has no desire to fight with Ukraine, and Moscow does not pose threats.

“The Ukrainians themselves, including the officials, say they are not being threatened.

But US officials say they are not threatened, ready to fight,
and provide enough weapons to the Ukrainians, parties or not,” Patrushev said.

According to Western media, for his part,
US President Joe Biden said that he intends to ,
send additional troops to the NATO countries’ territories in Eastern Europe soon. 

Biden has made it clear that he will do so “in the near future,” according to them.

The Pentagon announced earlier last week that it had put 8,500 troops,
on high alert in anticipation of the need to move them to Europe due to the tense situation over Ukraine.

Bloomberg reported last Friday that the UN Security Council meeting ,
on the situation in Ukraine is scheduled for Monday, even with Russia’s reluctance to do so. 

The United States believes that the meeting,
is an opportunity for Russia to explain its actions on the border with Ukraine ,
and to clarify whether it is planning a diplomatic solution to the problem,
according to the agency.

US indices end the week higher after a 3-week decline

In the US, indices rose by 1.7-3.1% on Friday,
strong growth in the last hours of trading after strong corporate reports,
thanks to which indices were able to reach “positive” at the end of the week.

During the week, the Dow Jones index rose by 0.8% and the Standard & Poor’s – by 1.3%,
Previously, the Dow Jones and Standard & Poor’s indices had fallen for three weeks in a row. 

The Nasdaq ended the week just 0.01% higher, but it was enough to break a four-week declines streak.

Investors also evaluated the latest statistical data released by the United States.

US Department of Commerce data showed that ,
the US population’s income in December rose by 0.3% compared to the previous month.

Meanwhile, Americans’ expenditures fell by 0.6%.

Which previously rose on the basis of six months in a row.

Analysts predicted an increase in the first indicator by an average of 0.5%,
while the second indicator dynamics matched expectations, according to Trading Economics.

The record consumer price index rose by 0.4% last month compared to November and 5.8% compared to December 2020,
and the annual growth rate was the highest in 40 years.

The core PCE index, which does not include food and energy prices,
rose by 0.5% on a monthly basis and 4.9% on an annual basis in December, the highest level since 1983.

Medium-term (next year) inflation predictions rose in January to 4.9% from 4.8% for the long-term (5 years) ,
up to 3.1% from 2.9%.

Positive trading in Asia and the Chinese exchanges are closed

Positive dynamics of stock indices also rolling Asia.

Australia’s ASX Australia rose by 0.2%, Japan’s Nikkei – by 1.4%,
Hong Kong’s Hang Seng – by 1.6%,
and mainland China and South Korea are closed due to celebrate the New Year according to the lunar calendar


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