Oil retreats after a 5% rise in yesterday’s session

Oil retreats after a 5% rise

Oil retreats after a 5% rise in yesterday’s session.. Everyone is waiting for corporate results season

Oil retreats after a 5% rise in yesterday’s sessionSeveral events are taking place in the economic scene today as the end of the week approaches. Oil retreated again after recording the highest levels since mid-March.


Corporate results season is still awaited to confirm the economic recovery of the United States of America,
which augurs well for a near-global economic recovery.


Evest is following up daily on what is happening on the economic scene and transmits it directly to you.


Oil falls again after a sharp rise in the previous session

Oil prices retreated today after a 5% rise on the previous day amid an improvement for oil demand forecasts and recovery of the world’s largest economies of epidemic effects.


West Texas Intermediate barrel for May delivery is traded on New York Fuel Exchange at $ 63.11 a barrel,
down 0.06.

While the cost of Brent crude for June delivery at the European Fuel Futures Exchange in London is $ 66.61 a barrel,
down 0.08%.

Oil prices sharply rose during the previous session after the US Department of Energy in its weekly report announced that US crude oil inventories had declined by 5.89 million barrels.


At the end of the previous session, in NYMEX Exchange, West Texas Intermediate crude rose by 4.9%,
while Brent crude in Chicago Mercantile Exchange rose by 4.6%.

It is the highest level since March 17.

This is the strongest decline in US crude oil inventories during nearly 2 months and for the third week of retreating in a row.


In contrast, inventories of distilleries, including heating oil,
retreated by 2.08 million barrels.


On other hand, gasoline inventories have risen slightly by 309,000 barrels.

These inventories have been increasing for 7 weeks up till now.

United States

In the United States, fuel consumption, which was launched in the market last week,
rose by 8.9 million barrels a day.

This is the highest number since August of last year,
according to a report of the Energy Information Administration.


On the other hand, the International Energy Agency (IEA) had also reviewed its expectations for oil demand for 2021 in its report on the oil market for March, which was published yesterday.


Yesterday, the agency raised its forecast for global oil demand in 2021 by 230,000 barrels a day,
citing improved economic prospects. According to the International Energy Agency (IEA),
demand for oil in 2021 will reach 96.7 million barrels a day, an increase of 5.7 million barrels a day than 2020.


Rapid vaccination efforts in the United States of America and large-scale stimulus packages in the country,
as well as improvement in Chinese economic data,
were major reasons for a positive review of demand expectations.


Meanwhile, the fuel market will soon have to deal with more oil from OPEC + countries,
which will begin adding additional barrels of oil to fuel markets in May.


OPEC estimates that global crude oil inventories may decline,
despite the fact that more crude oil is expected to enter the market by 2 million barrels a day.


Oil demand is still uncertain as European countries are continuing to impose restrictions following the third wave of Coronavirus. India, a major oil consumer in the world, is also fighting the third wave of the Covid-19 virus.


Nikkei index keeps its rise amid major fears of Coronavirus and a threat of Olympics

Tokyo Stock Exchange was nearly halted on Thursday, due to concerns about a rapid rise in Covid-19 infections in Japan,
which is threatening to slow the country’s economic recovery..


The leading Nikkei index ended up 0.07% to record 26,642.69 points while the broader Topix index rose by 0.36% to reach 1959.13 points.


More than 4000 new daily cases of Covid-19 were recorded in Japan yesterday.

This is the highest level since the end of January.


Several departments in the country have already reinstated restrictions to face this wave,
including Tokyo, which is scheduled to host Olympic games in less than 100 days starting from now.

Toshihiro Nikai

Toshihiro Nikai, General Secretary of Liberal Democrats Party, Japan’s main ruling party,
said that canceling the Olympics remains an option to face the health crisis, according to a local media report on Thursday.


However, Nikai classified his remarks by recalling Japan’s desire to make the session a “success”.

Hong Kong

In Hong Kong, the Hang Seng index fell by 0.88% in today’s afternoon,
while both Shanghai and Shenzhen were in the red area at the end of the session.


It was reported that the Japanese Softbank Group for Technology investment has witnessed record gains in the period between January and March, which may reach $ 30 billion, according to Bloomberg agency.


A volatile day in Wall Street.. All eyes are on banks

In the United States, the quarterly season began as JPMorgan,
Goldman Sachs and Wells Fargo achieved large jumps on Wednesday.


In general, analysts predict that 500 companies that make up Standard & Poor’s 500 indexes could rise by 25% during the first quarter of 2021 compared to the same period of 2020.

jump in profits is expected

As for banks, a jump in profits is expected.

If banks can confirm these expectations, or it is better to overcome them,
there will be another confirmation to the stock market that the US economic recovery is really strong.


In terms of indicators, the Dow Jones index rose by 0.16% to record 3,3730.89 points,
while the Nasdaq Composite index lost 0.99% to record 13857.84 points.

Standard and Poor’s 500 lost 0.41% to reach 4124.66 points.

United States

Imports in the United States for March rose by 1.2%, against expectations of 0.9% and 1.3% during last month.

On an annual basis, these prices rose by 6.9%.

For its part, the price of exports rose by 2.1% compared to February against expectations of 0.9%.

On other hand, investors follow US retail sales in March and weekly claims for unemployment benefits.

Leave a Comment

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