Oil rises with projections of a partial EU embargo on Russian oil
Oil prices rose on Tuesday morning after news that EU leaders had agreed to a partial embargo on Russian oil imports
Evest follows market developments in the following report
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Oil rises after European leaders expected to agree to the Russian oil embargo
Oil rises after European leaders expected to agree to the Russian oil embargo
Brent crude futures for July rose by $1.65 (1.36%) on the London Futures Exchange, to $123.32 per barrel
Trading in the July futures contract expires on Tuesday
while August’s most active futures increase by $1.80 (1.53%) to $119.40 per barrel
As a result of Monday’s trading, the July futures contract rose by $2.23 to 119.43 per barrel
West Texas Intermediate crude futures’ prices for July rose at that moment by $3.59 (3.12%)
to $118.66 per barrel, in electronic trading on the New York Mercantile Exchange (NYMEX)
WTI rose on Friday by $0.98 (0.9%) to $115.07 per barrel, with no trading on Monday due to a holiday in the United States
European Council President Charles Michel tweeted that EU heads of state and government had agreed to embargo two-thirds of oil supplied from Russia
“These sanctions will directly affect 75% of Russian oil imports, and by the end of the year
90% of Russian oil imports into Europe will be under embargo,” he added
He pointed out that the decision to impose the embargo was partial, not complete
a compromise, because Hungary, which relied heavily on Russian energy, opposed the embargo on supplies
Earlier, JPMorgan analysts wrote that the complete rejection of Russian oil could bring its price to $185 a barrel
“Pipeline oil shipments are not included in the new sanctions package
but the offshore oil embargo remains an important action because it provides
about two-thirds of the EU’s oil imports from Russia,” said Vivek
head of energy market research at the Commonwealth Bank
China’s PMI rises
China’s purchasing managers’ index (PMI) for manufacturing industries rose to 49.6 in May from 47.4 the previous month
the lowest in 26 months, the State Bureau of Statistics said
and The PMI value above 50 points indicates an increase in activity in the sector, less than its double
The index has been below this level for three consecutive months
Wall Street Journal and Trending Economics surveys showed analysts expected an average increase of 48.9 points
This month’s sub-production index rose to 49.7 points from 44.4 points in April, the new orders index to 48.2 points from 42.6 points, and the employment index to 47.6 points from 47.2 points. The near-future industry optimism index rose to 53.9 points against 53.3 points
In the meantime, the GSO Services and Construction PMI jumped to 47.8 in May from 41.9 last month. Meanwhile, an improvement in the situation was recorded in 17 out of 21 sectors
The consolidated PMI rose to 48.4 from 42.7 in April
French GDP declines
Final data from the French National Institute of Statistics showed that, in the first quarter of 2022
French GDP fell 0.2% compared to the previous three months
This is the first decline in the index since October and December 2020
According to the preliminary estimate, GDP has not changed quarterly
The Trading Economics survey showed that analysts, on average, did not expect a review
The main negative factor was a 1.5% decline in consumer spending
including on transportation equipment by 2.3% and housing and food by 3.9%
The population’s disposable income declined by 0.5% as inflation accelerated
Business investments grew by 0.6%, as a result of increased investments in information technology and services
as well as capital expenditures
Export volumes from January to March rose by 1.2%, and imports by 0.5%
French economy growth in the first quarter compared to the same period last year was 4.5%
According to Bank of France projections, the country’s GDP in April and June will rise by 0.2% on a quarterly basis
France’s consumer prices, compliant with EU standards, rose 5.8% year-on-year in May
the fastest rate ever recorded, according to preliminary data
The consumer prices index (CPI) rose by 0.7% compared to the previous month
Both indices coincided with analysts’ expectations in the Bloomberg survey
Economists surveyed by Trading Economics projected consumer prices to rise by 5.6% year-on-year and 0.6% monthly
In April
the annual inflation rate was 5.4%, and the monthly rate was 0.5%
In May, the French consumer prices rose by 5.2% from the same month in 2021 and 0.6% from April
The country’s energy price growth rate accelerated in May to 28% year-on-year from 26.5% in April
food by up to 4.2% from 3.8%, and industrial goods by up to 2.9% from 2.6٪. 2.6٪
Services rose by 3.2% after rising 3% in April. In the meantime, tobacco product prices fell by 0.1%
French consumer spending fell unexpectedly by 0.4% in April from March. Economists surveyed by Bloomberg forecast growth of 0.5%
French food spending fell by 1.1% after falling 1.6% in the previous month
Industrial commodity consumption in April fell 0.3% after March’s 0.6% decline
and the decline in durable commodity spending slowed to 0.7% from 1.7%
Electricity consumption rose by 0.7% compared to the previous month
Spending on clothing and other textiles rose by 0.5% after rising 1.9% in March
According to the revised data, consumer spending in March fell by 1.4% compared to February
although a 1.3% decline was previously reported