Oil rises again after falling for two sessions .. Indices are stable in the United States
Oil rises again after falling for two sessions .. Indices are stable in the United States:
The American Petroleum Institute announced a fall in US oil inventories last week,
which has boosted prices to new record levels,
but official statistics have not yet been published and are expected to be released today.
Evest follows all developments on the economic scene and relays them to you daily.
Falling oil stocks boost prices
Benchmark crude oil prices rose on Wednesday after data from the American Petroleum Institute showed a decline in U.S. oil inventories last week.
West Texas Intermediate crude rose by 1.40% to $70.29 a barrel, while Brent crude rose by 1.20% to $72.34 a barrel.
The August Brent oil futures On the ICE Futures Exchange in London were at $72.56 a barrel, $0.34 (0.47%) higher than the previous session’s closing price.
As a result of trading on Tuesday, those futures rose by $0.73 (1%) – to their maximum since May 2019 of $72.22 a barrel.
The price of West Texas Intermediate crude futures for July in electronic trading
on the New York Mercantile Exchange (NMX) was $70.41 a barrel, $0.36 (0.51%)
higher than the final value of the previous session.
By the market close on Tuesday, the value of those futures had risen by $0.82 (1.2%) – to $70.05 a barrel.
Dow Jones Market
According to data from Dow Jones Market, this is the highest level of closure since October 2018.
The North American commodity closed at its highest level since October 2018 after briefly touching a key psychological level earlier this week, with official U.S. inventory data awaiting release today.
The American Petroleum Institute reported yesterday that the U.S.
oil reserves for the week ending June 4 fell by 2.1 million barrels.
While the country’s gasoline reserves increased by 2.4 million barrels,
and distillation output by 3.8 million barrels.
Analysts in an S&P Global Platts poll predicted that United States Department of Energy data would show a fall of 4.1 million barrels in oil inventories last week.
Also, according to their forecasts, the gasoline reserve increased by 1 million
barrels and the distillation output by 400 thousand barrels.
The U.S. Department of Energy
The U.S. Department of Energy’s weekly report on the country’s energy reserves will be released today, Wednesday.
In the meantime, the country’s Department of Energy has raised its forecast for the average price of Brent crude for the current year from $62.26 to $65.19 per barrel, according to monthly forecasts by the Energy Information Administration (EIA).
However, the Energy Information Administration has reduced the
forecast for the average price of Brent crude for next year to $60.49 a barrel from $60.74.
The Energy Information Administration’s forecast for the average price of WTI crude oil for 2021 has been increased to $61.85 a barrel versus its estimate in May of $58.91, and in 2022 it has been reduced to $56.74 a barrel from $56.99.
According to S&P Global Platts
According to S&P Global Platts, production from OPEC + countries rose by 430 thousand barrels per day in May,
and the production cut deal was implemented by 111.45% compared to 111.16% in April.
On the other hand, trust in the outlook for oil demand continues to grow as accelerated vaccinations allow people to travel more.
The U.S. State Department
The U.S. State Department has eased travel warnings to countries around the world,
including France, Canada, and Germany, which could pave the way for easing airline restrictions on overseas travel.
The basic environment in the oil market remains good, with fuel demand recovering strongly not only in the United States but also in Europe after the (partial) lifting of restrictions.
In the UK, one of the most vaccinated countries in the world,
all restrictions related to COVID-19 will likely be lifted on June 21 as planned.
Some degree of support was also the possibility that the next Iranian president
would not obstruct talks on a nuclear agreement that would soon be resumed.
Also, emerging markets are getting more vaccines, which is positive for oil prices, as the Brazilian Minister of Health indicated that they have enough doses of the vaccine to achieve herd immunity.
The Organization of Petroleum Exporting Countries (OPEC)
The Organization of Petroleum Exporting Countries (OPEC) renewed its intention to add two million barrels per day, as of July. However, their next step still vague because the group has not yet commented on what will happen after that month.
It seems that OPEC will remain in control, and American oil producers will continue
to exercise restraint after the outbreak of the pandemic.
The progress of crude oil has stalled since the 2020 collapse at times this year,
but prices have generally returned to their upward trajectory as global demand continues to improve.
However, the COVID-19 outbreak in parts of Asia and Latin America is a reminder that the recovery will be bumpy.
Collective fall of Asian exchanges
Most major Asian stock markets fell on Wednesday.
Japan’s leading Nikkei 225 index lost about 0.3 percent shortly before the end of trading.
Hong Kong’s Hang Seng index has recently fallen by 0.2%.
The CSI-300 index, which includes shares of the 300 top 300 listed companies in mainland China, rose by 0.2 per cent.
U.S. markets are stable
U.S. exchanges barely moved on Tuesday.
According to experts, markets are still being supported by the recovery of the world’s largest economy and restraint
on the part of the U.S. Federal Reserve regarding monetary policy.
Therefore, the environment will remain risk-friendly for the time being.
At the same time, however, studies have warned that concerns about inflation, rising rates,
and inequality in the global introduction of vaccines pose risks that could come back to the fore at any time.
Dow Jones
Dow Jones Industrial Index fell 0.09 percent to 34599.82 points.
Its record high of just under 35,092 points, reached about a month ago, is still within reach.
Standard & Poor’s 500 Index rose by 500 0.02 percent to 4227.26 points.
Nasdaq 100 heavy-tech index, rose by 0.06 percent to 13810.86 points.
Oil rises again after falling for two sessions