Oil is at its highest level in 3 years .. European stock exchanges start at a rising edge
Oil is at its highest level in 3 years .. European stock exchanges start at a rising edge:
Oil continues to rise to new higher levels, and there are significant signs of recovery,
especially since there are now demands by the International Energy Agency for higher production
in order to suffice the increasing demand, which is expected to increase further in the coming days.
Evest follows developments in the commodity trading markets and relays them to you in the following lines.
Oil is at the highest level since October 2018
World oil prices are at a 32-month high-level today, Monday, with vaccines available worldwide that boost demand expectations, particularly in the United States and Europe.
The barrel of U.S. West Texas Intermediate crude was sold with a July contract at $71.24 on Monday at 7.41 a.m. Central European Time.
That was 33 cents or 0.47% more than on Friday at the close of trading on the New York Mercantile Exchange.
West Texas Intermediate crude had previously priced at $71.32 a barrel, the highest level since October 2018.
West Texas Intermediate crude rose 62 cents, or about 0.9%, on Friday and closed at $70.91 a barrel.
Over the entire last week, it boosted by about 1.9% and rose for the third week in a row.
As for Brent, the North Sea oil contract was sold at 34 cents, or 0.47%,
on Monday at 7.42 a.m. Central European Time at $73.03 a barrel,
before reaching $73.12 a barrel, the highest price for Brent since May 2019.
U.S. crude rises
The price of U.S. crude rises, after three weeks in a row of rising, to its highest level since October 2018.
Car traffic has returned to pre-pandemic levels in North America and most of Europe, and air traffic is gradually recovering.
Americans are slowly returning to their usual routine, returning to their offices,
meeting friends, and organizing group events, while 2 million American citizens travel daily,
for the first time since the pandemic, according to Bloomberg.
The price of West Texas Intermediate crude is moving toward its fifth quarter in a row of profit,
meaning its best performance since 2010, as consumption increases and exporting countries and their partners reduce production constraints at a very slow and gradual pace.
The International Energy Agency
The International Energy Agency predicted last week that crude demand will return to pre-pandemic levels later in 2021, calling on OPEC and its broader OPEC + partners to help balance the market by gradually opening production.
Although deregulation has progressed in the United States and part of Europe, there are still setbacks. The United Kingdom Prime Minister, Boris Johnson, is expected to postpone the full deregulation of restrictions in England, which was scheduled for 21 June, due to the widespread mutation of the Indian coronary virus coronavirus (Delta).
The nuclear program agreement
Traders will also monitor the continuation of talks in Vienna between Iran and the major powers to revitalize the Middle Eastern state’s nuclear program agreement, while presidential elections are held there on June 18.
An agreement to revive the Iranian nuclear agreement is likely to lift U.S. sanctions and increase supplies to Iranian oil markets.
Meanwhile, Iran’s Deputy Foreign Minister, Abbas Araqchi, questioned the chances of resuming the nuclear agreement before Iran’s presidential election on June 18.
Ibrahim Raisi, President Rouhani’s current rival in the Chair, and a favorite of many confirmed that he would continue the negotiations, but did not consider them a high national priority.
Iraq, OPEC’s second-largest producer, said he “expects” oil to move between $68 and $75 a barrel in the second half of 2021.
Early rises in European exchanges
European exchanges are awaiting a two-day Fed summit,
from which the market is expected to confirm the current accommodative monetary policy on Wednesday.
The Italian FTSE MIB index rose by 0.47% initially, the Frankfurt index rose by 0.5%,
Paris rose by 0.48%, and Amsterdam rose by 0.6%.
The Spanish stock market opened higher by 0.66٪ on Monday,
pending industrial production data for April in the Eurozone and in a context where the market appears to trust it given the temporary nature of rising inflation.
IBEX 35, the main Spanish selective, advanced 60.20 points,
or 0.66%, and reached 9263.70 valid number.
The year’s profits were expanded to 14.77%.
Good rise for Tokyo Exchange.. The Olympics are on time.
The Tokyo Stock Exchange rose on Monday as did Wall Street on Friday,
as investors expressed trust in the economic recovery and optimism about a temporary acceleration in U.S. inflation.
The Nikkei index of 225 major Japanese companies rose by 0.74 percent to 29161.80
and the broader Topix index rose by 0.29 percent to 1959.75 points.
Inflation will be at the heart of the U.S. Central Bank (Fed) meeting on Tuesday and Wednesday,
but this week’s decline in Fed support for the U.S. economy is unlikely, and its chairman,
Jerome Powell is expected to again believe that the current sharp price hike is only temporary.
The Bank of Japan (BOJ) is also scheduled to hold a monetary policy meeting this weekend.
Investors also welcomed the announcements of the G-7 summit this weekend.
For their part, the G-7 leaders decided to provide more than 1 billion doses of the Covid – 19 vaccines to developing countries by the end of 2022 and supported the holding of the Tokyo Olympics this summer.
Chinese markets were closed on Monday because of a local holiday.
A slight rise in the euro against the dollar
In the currency market, the euro rose barely against the dollar to 1.2107, after being at 1.2101 on Friday.
The single currency value is also 132.77 yen, while the dollar against the yen is 109.68.
Oil is at its highest level in 3 years