Oil is stable after a sharp increase yesterday.. Asian stocks are in green area

Oil is stable after a sharp increase yesterday

Oil is stable after a sharp increase yesterday.. Asian stocks are in the green area

Oil is stable after a sharp increase yesterday: Markets have witnessed several developments,
the most notable is reducing oil losses yesterday after oil was close to falling below the $ 60 level.

Asian stocks are on a major recovery today, as markets have witnessed a rise in most Asian indices.

Every day, Evest is following up on all developments in markets and relays them to you.

Oil retreats again after a good day of gains

Oil prices decreased after new closures caused by Coronavirus had led to reviving concerns about demand for Petroleum products, and amid the accident of a stuck oil ship in the Suez Canal, whose locomotive was tried to be pulled.

Brent crude futures for May delivery fell to record $ 63.08 a barrel or 2.06% on Thursday morning.


West Texas

At the same time, West Texas Intermediate crude oil futures for May fell by 2.27%, to trade at $ 59.79 a barrel.


European countries

With low prices, it was concerned that actions taken in European countries,
especially in the range of fighting the new strain of Coronavirus “Covid-19” epidemic, would affect oil demand.

While the risk of a surge in the Covid-19 epidemic in addition to fears of a new wave that causes taking new measures in many countries, particularly in Europe, but continues to have a negative impact on prospects for oil demand recovery.

While vaccinations of the Covid-19 epidemic continue in many countries, especially in European ones, difficulties in the safety of the vaccine and its supplies, as well as banning of exporting vaccine by some countries, may increase tension in the oil market.


Increase in US commercial crude inventories

On other hand, a higher than expected increase in US commercial crude inventories,
which is the world’s largest oil consumer, supported downward prices.

US commercial crude stocks rose by 1.9 million barrels last week compared to the previous week,
according to US Energy Information Administration (IEA) data.

Market expectations showed an increase of about 900,000 barrels.

On other hand, 13 million barrels of crude oil’s transmitting was stopped because of landing a giant container ship in Suez Canal in Egypt, which is one of the world’s most important waterways.

This caused a quick rise in prices. Development, which disrupts global oil trading can somewhat limit low prices.


Sea route between Europe and Asia

A huge container ship suspended in Suez Canal for more than a day,
but it partially recovered due to canceling a ban for the fastest sea route between Europe and Asia,
according to an announcement by the port agent on Wednesday.

A 400-meter giant container ship by Panama flag which stopped across the canal during a severe sandstorm has blocked traffic in both directions.

More than 150 vessels have been accumulated at the entry of Suez of Red and the Mediterranean Sea.

On Wednesday, the price of oil rose by 6%, by the same percentage as its falling on Tuesday,
due to a ship’s disorder in Suez Canal, which by its turn may lead to stopping crude oil supplies in the region.

Brent crude oil also rose by 5.6% to record $ 64.17 a barrel after a similar decline during the previous session.

The rising of prices was also supported by US data regarding a resumption of refining activities,
which indicates that refineries had largely been recovered from the sudden cold wave in Texas during February.


Brent crude oil prices

On Wednesday, Brent crude oil prices rose by 5.6% to record $ 64.17 a barrel after a decline of 5.9% during the previous session.

West Texas Intermediate crude oil

On Wednesday, West Texas Intermediate crude oil also rose by 5.5% to reach $ 60.96 a barrel,
while on Tuesday, the same crude fell by 6.2%.

These increases seem to make the market stable, which has been declining since the start of this month,
due to concerns regarding new quarantine procedures and the slow space of vaccinations in Europe.

Variation in performance of Wall Street indicators

Yesterday, US stock markets closed a weak day, as Standard & Poor’s 500 and Nasdaq indexes fell,
while the Dow Jones Industrial index stagnated.

Yesterday, all US three major indexes positively started trading, but then, they turned strong.

In the end, Standard and Poor’s index fell by 0.55%, while the Nasdaq index was finally decreased by 2%,
but the Dow Jones index was stable.

Technology companies’ performance was weak, but cruise ship stocks have also retreated after US Epidemiological Authority ruled that ships travel restrictions would remain in place until November 1.


Tesla’s shares

Tesla’s shares almost retreated by about 5%but cruise companies had passed a large bad day,
the weak performance is largely due to the fact that, according to the decision released by US epidemiology,
travel restrictions on ships will remain valid until November 1.

On other hand, oil companies’ stocks have been risen after stopping a cargo ship that stopped traffic in Suez Canal,
which plays a major role in freight traffic.

This incident led to delaying the delivery of about 13 million barrels of oil.

Positive moves for Asian stock markets

Performance of Asian markets was often well, as the Japanese Nikkei index rose by 1.1%,
while the Kospi index rose by 0.4%, but the Australian stock market rose by 0.2%.

Singapore stock index rose by 03%.

However, Shanghai and Hong Kong Exchanges witness a retreating in their indexes.

US futures indicators are expected to rise, while DAX future index rose by 0.2%.

DAX index may start weak

Epidemic concerns and closure extension in Germany seem to be weighing on leading German indicators.

According to expectations, today DAX index will start at a decline of 0.24% to record 14,575 points.

This is still only 1.5% below its highest levels of 14,804 points, which it reached last week.

Leave a Comment

Your email address will not be published. Required fields are marked *