Oil retreating from the gains of the last two days .. and a negative trading session in Asia

Oil retreating from the gains

Oil retreating from the gains of the last two days .. and a negative trading session in Asia

Oil retreating from the gains of the last two days .. and a negative trading session in Asia:

The price hikes of the previous two sessions did not continue much, as oil fell again at the Asian meeting today,
influenced by US President Joe Biden’s demand for OPEC to increase its crude production. 

Evest follows the latest developments in the commodity trading market in the following report.

Oil is falling .. and it is negatively close to $70

Oil prices declined in today’s trading, Thursday, ending the strength of the previous two sessions.

The price of Brent crude futures for October 2021 fell 0.2% to the US $71.27 per barrel,
having previously risen to the US $71.69 per barrel.

Similarly, the price of West Texas Intermediate crude futures for the September 2021 delivery fell by 23 cents,
or 0.3%, to the US $69.02 per barrel after previously rising to the US $69.51 per barrel.

Edward Moya, the chief analyst at OANDA, said that crude oil prices had reduced previous gains stemming from President Biden’s request for OPEC to increase crude production.

“The rise in oil prices has been affected by key factors in Asia, with growing concerns about the outlook for China,
which looks worse this month, and this is not good for demand expectations,” Moya added.

US President Joe Biden

US President Joe Biden on Wednesday urged the Organization of Petroleum Exporting Countries (OPEC) and its allies,
known as OPEC +, to increase oil production to cope with the high gasoline prices that they see as threatening the recovery of the world economy.

OPEC itself agreed to increase production per month by 400 thousand barrels per day compared to the previous month, starting in August.

This means that the remaining 10 million barrels per day have been eliminated from record cuts, about 10% of global demand, which was made in 2020.

However, concerns remain that the increase will not be sufficient to meet demand as the United States and Europe ease the movement restrictions caused by the coronavirus.

“The Biden administration has said that the recently agreed production increase will not fully offset previous production cuts imposed during the pandemic,” ANZ said.

The White House added that its communication with OPEC + was ongoing and aimed at long-term engagement, but did not necessarily receive an immediate response.

The U.S. added that it had not asked American producers to increase production,
causing the market to rise on Wednesday, said Phil Flynn, chief analyst at Price Futures Group in Chicago.

Other data from the American Petroleum Institute report also affected prices.

US crude inventories fell slightly last week, but by more than expected. 

On the other hand, gasoline inventories have fallen to their lowest level since November.

The number of more volatile weekly orders has also declined.

The above-forecast decline in US commercial crude oil inventories has boosted prices upward, with demand perceived to rebound.

the United States Energy Information Administration (EIA)

According to the United States Energy Information Administration (EIA),
the country’s commercial crude oil inventories fell by 400 thousand barrels (0.1 percent) last week to approximately 438 million and 800 thousand barrels.

The market expectations were that inventories would fall by one million and 50 thousand barrels.

During the mentioned period, United States gasoline stocks recorded 227 million and 500 thousand barrels,
down by 1 million and 400 thousand barrels (0.6 per cent).

Earlier, oil prices boosted the weakness of the US dollar, which could send speculative investors into US dollar-denominated assets such as commodities,
and also after the US Senate passed a trillion-dollar infrastructure bill late Tuesday.

 

The negative atmosphere resulting from the increase in the number of new types of cases of coronavirus (COFID-19) continues to affect oil prices.

Traders are awaiting the publication of the monthly OPEC and IEA oil market reports, on Thursday,

US inflation stops accelerating

In the afternoon, the International Energy Agency will release its monthly report in the United States,
and there will be statistics on initial claims for unemployment benefits and a report on producer prices.

The PPI index is expected to accelerate growth to 7.4% from 7.3% in June, while the basic PPI index will maintain its growth rate at 5.6%.

Consumer price statistics released yesterday in the United States in July showed that inflation in the United States has stopped accelerating.

The Fed has repeatedly promised that high inflation is temporary.

In China, again, domestic problems are pressing the stock market,
while others are guided by the dynamics of the American market. 

Insurance companies’ stocks in Hong Kong have also come under selling pressure amid declarations
by the regulator about increased oversight in the industry.

Dow Jones reaches a new record

In the United States, stock indices changed by 0.2-0.6% on Wednesday, while the Dow Jones index (+ 0.6%) reached a new record.

The basic consumer price index rose in July by 0.3% versus June against 0.4% growth forecast,
and the index rose by 4.3% in line with expectations, on an annual basis.

Chicago Fed Bank President Charles Evan said the situation in the U.S. economy this year would meet the conditions
that would allow the Federal Reserve Board to begin reducing the monthly volume of bond buybacks.

Meanwhile, Evans does not believe, unlike many of his Fed colleagues,
that the Fed should actually announce these plans at the September meeting – the regulator should evaluate more reports about the labor market before making a decision.

Decline on Asian indices

In Asia, stock indices fell, with Japan’s Nikkei index falling by 0.2%, China’s Shanghai composite -0.2%,
and Hong Kong’s Hang Seng index losing 0.7%, amid concerns about tighter regulatory control in China.

In the Asian region, concerns remain about the recent tightening of Chinese regulators’ control over a number of companies.

Analysts said online insurance is likely to be the next target.

 

Oil retreating from the gains of the last two days .. and a negative trading session in Asia

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