Oil falls Wall Street declines The United States of America intends to announce new actions to support consumers because of rising energy prices. Market participants await these actions
Evest follows market developments in the following report
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Oil declines again after a jump the day before
European Bank for Reconstruction (EBRD) expects Russian domestic product to decline by 10%
Wall Street falls after a four-day rally
Oil declines again after a jump the day before
Oil prices
declined actively during Thursday morning trading after rising dramatically the day before
Traders are expecting Washington to announce actions to support American consumers amid rising energy prices, as well as assessing the data published the previous day on the decline in US fuel inventories
The cost of Brent crude futures for May on the London Stock Exchange ICE Futures on Thursday was $107.98.26 per barrel, $5.47 (4.82%) lower than the closing price of the previous session
As a result of Wednesday’s trading, these futures rose by $3.22 (2.9%) to $113.45 per barrel
The May futures contract for Brent crude is traded for the last day on Thursday
The price of the most active June futures contract fell $5.27 (4.73%) to $106.17 per barrel
The price of West Texas Intermediate
oil futures for May in electronic trading on the New York Mercantile Exchange (NYMEX) was $101.47 per barrel, $6.35 (5.89%) lower than the final value of the previous session
On Wednesday, the cost of these futures rose $3.58 (3.4%) to $107.82 per barrel
As reported, US President Joe Biden
will introduce actions on Thursday aimed at lowering energy prices in the US market
The White House has not provided details, but Bloomberg says the Biden administration is considering releasing nearly a million barrels of oil per day from US strategic reserves over several months to combat rising gasoline prices and supply shortages, citing people familiar with the matter
In the meantime, US commercial oil reserves have been known to fall by 3.45 million barrels in the week ending March 25.
Analysts surveyed by Bloomberg expected a less significant reduction – 2 million barrels
Gasoline reserves rose by 785 thousand barrels and distillates amounted to 238.83 million barrels – 1.4 million barrels to 113.53 million barrels.
Analysts projected a decline of 1.6 million barrels in gasoline distillate and 1.5 million barrels in the distillate
European Bank for Reconstruction (EBRD) expects Russian domestic product to decline by 10%
Russia
The European Bank for Reconstruction and Development (EBRD) expects Russia’s GDP to decline 10% in 2022 and predicts zero dynamics in 2023
The European Bank’s new estimates for reconstruction and development, published on Wednesday
differ substantially from previous projections – in November 2021, the bank expects Russia’s economy to grow by 3% in 2022
The European Bank for Reconstruction and Development (EBRD) was one of the first to publish projections of the Russian economy since the start of the military operation in Ukraine and the ensuing sanctions shock
which made previous estimates irrelevant
In early March, rating agency Moody’s published its forecast (-7%),
and the Central Bank of Russia provided a non-personal forecast for analysts (-8%)
Ukraine
The decline in Ukraine’s GDP, in 2022, maybe as high as 20% (in November 2021, the Ukrainian economy was expected to grow by 3.5% in 2022)
according to the European Bank’s projections for reconstruction and development
In the meantime, the European Bank for Reconstruction and Development expects a major recovery in Ukraine’s economy in 2023 – an increase of 23% at once
Belarus’s GDP will decline 3% in 2022 (in November 2021, the European Bank for Reconstruction and Development predicted the growth of the Belarusian economy in 2022 by 0.2%)
and in 2023, it is expected that there will be no economic dynamics
according to the European Bank’s projections for reconstruction and development
“The new outlook is based on a number of assumptions about events in the coming months
so there is a high degree of uncertainty,” the EBRD said
The European Bank for Reconstruction and Development projections indicate that
with the assistance of intermediaries, a ceasefire will take place within two months
shortly after major reconstruction work begins in Ukraine
bringing Ukraine’s gross domestic product (GDP) by the end of 2023 closer to
but still lower than, pre-war levels
Sanctions on Russia are expected to continue for the foreseeable future
leading to a recession in the Russian economy in 2023 (after a sharp decline in GDP in 2022)
with negative consequences for a number of neighboring countries
the European Bank for Reconstruction and Development said in its statement
“Eastern Europe, Caucasus and Central Asia
“Given this great uncertainty, the Bank intends to prepare further projections in the next two months
taking into account further developments,” the EBRD said
Wall Street falls after a four-day rally
Wall Street declined yesterday, Wednesday, after the Dow Jones and Standard & Poor’s 500 index rose for four consecutive days
The Dow Jones Industrial Index fell 65.38 points (0.19%) to 35228.81
The Standard & Poor’s 500 declined 29.15 points or (0.63%) to 4602.45 points
the Nasdaq composite index declined 177.36 points or 1.21٪
Stock markets have declined amid fading signs of progress in the peace talks between Ukraine and Russia
Russian forces bombed the Kyiv suburbs and besieged cities in northern Ukraine
a day after they pledged to scale back military operations
The S&P index rebounded more than 5% in March after starting 2022 with two consecutive monthly declines
However, the benchmark is on track for its first quarterly decline since the first quarter of 2020
when the Covid-19 pandemic in the United States peaked
Stock prices interacted with headlines on negotiations to complete the Russian invasion of Ukraine
Prices of commodities such as oil and minerals have risen since the invasion
compounding already high inflation in the United States
On the other hand, inflation is rising and speculation is that the Federal Reserve may become more proactive in raising interest rates
This would dampen economic growth
artical name: Oil falls Wall Street declines