Positive oil trading ahead of the OPEC meeting and the dollar rebounds against the sterling and the yen
Positive oil trading ahead of the OPEC meeting and the dollar rebounds against the sterling and the yen: Traders are awaiting the upcoming OPEC meeting,
at which the organization will announce whether it will maintain or increase current production levels.
Evest follows market developments in the following report.
Topics:
Oil rises and investors are waiting for the OPEC meeting
Standard & Poor’s completes its record run by setting a new high on the first trading day of 2022
Strong gains for Tesla and Apple
The dollar is weak against the euro and strong against the sterling and the yen
Oil rises and investors are waiting for the OPEC meeting
Oil prices rise Tuesday before the forthcoming OPEC + meeting.
The cost of Brent crude futures for February on the London Stock Exchange ICE Futures on Thursday is $79.42 per barrel,
$0.44 (0.56%) higher than the closing price of the previous session.
As a result of Monday’s trading, these futures rose by $1.2 (1.5%) to $78.98 per barrel.
The price of West Texas Intermediate crude futures for February in electronic trading on the New York Mercantile Exchange (NYMEX) at this time is $76.42 per barrel,
$0.34 (0.45%) higher than the final value of the previous session.
By the end of Monday’s trading, the value of these futures rose by $0.87 (1.2%) to $76.08 per barrel.
OPEC + Monitoring Committee
Ministers of the OPEC + Monitoring Committee, and then ministers of all OPEC + countries,
will meet on Tuesday to discuss the state of the oil market and to decide whether to change the plan to increase oil production by 400,000 barrels per day in February,
which was approved in July 2021.
Bloomberg’s OPEC + sources stated that the organization intends to maintain the pre-approved plan again.
On Monday, OPEC adjusted its oil market forecast for the first quarter of 2022.
According to new forecasts, the oil supply on the world market from January to March will exceed demand by 1.4 million barrels per day.
Previous projections assumed that the oversupply would be 25% higher.
The change in expectations is due mainly to the outlook for oil supplies that were weaker than previously assumed by non-OPEC members.
The previous day, OPEC ministers had elected a new Secretary-General of OPEC at an extraordinary meeting ,
effective August 1, 2022, Haytham Al-Qays of Kuwait was elected for a three-year term, the organization said.
Standard & Poor’s completes its record run by setting a new high on the first trading day of 2022
US stocks rose confidently on Monday, with the Dow Jones Industrial Index and the Standard & Poor’s 500 ending their first session of 2022 at record levels.
At the end of 2021, Standard & Poor’s added 26.9%, the Nasdaq Composite Index – 21.4%, and the Dow Jones Industrial Index – with an average of 18.7%.
The Dow Jones Industrial Index rose 246.76 points (0.68%) at the close of the market on Monday to 36585.06. Standard & Poor’s 500 rose by 30.38 points (0.64%) to 4796.56 points.
The Nasdaq Composite Index rose by 187.83 points (1.2%) to 15832.8 points.
Experts say the start of the year may be less successful for the US stock market.
The emergence of Covid- 19 vaccines, the lifting of quarantine restrictions,
as well as the soft policy of the Federal Reserve System (FRS) and other global central banks,
boosted financial markets last year.
This year, however, economists warn that the Fed plans to tighten monetary policy, which will put pressure on markets.
Strong gains for Tesla and Apple
Apple’s stock price rose 2.5 percent on Monday to $182.01. The stock price rose to $182.88 during the session,
increasing the company’s capital by more than $3 trillion,
but it could not remain at this level, for its decline with the closing of the market.
Tesla’s stock rose by 13.5% – up to USD 1199.78. Deutsche Bank analysts raised the company’s stock target to $ 1200 from $ 1000.
Last year, Tesla increased the supply of electric cars by 87%, to 936 thousand units.
The result exceeded both the expectations of experts surveyed by FactSet at 897 and Tesla’s expectations,
which planned to increase shipments by 50%.
Stocks of Ford Motor and General Motors rose by 4.8% and 4.3% respectively.
The dollar is weak against the euro and strong against the sterling and the yen
The United States dollar is falling slightly against the euro while looking strengthened against the yen in trading on Tuesday.
The ICE dollar index, which shows dollar dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling, Swedish krona) ,
adds 0.01%, and the broader WSJ dollar index also adds 0.01%.
The euro pair traded against the dollar at 1.1304 on Tuesday, up from $1.1299 at the end of the previous session.
While the US currency recorded against the yen 115.79 yen, from 115.32 yen the previous day.
The sterling lost 0.1% against the dollar during the dealings, and the Australian dollar increased 0.3%.
Issues of concern to foreign exchange traders at the end of last year – the situation under the Coronavirus and inflation prospects – also remained dominant in early 2022.
“This year started the same way it ended last year, and it is unlikely that much new information will emerge this week,” Danske analysts said.
The dollar value of the ICE index rose by about 7% at the end of 2021, the best annual dynamic since 2015.
The dollar was backed by predictions that the Federal Reserve System (FRS) would soon begin to raise its prime interest rate,
amid a strong economic recovery in the United States and high inflation.
The consumer price index PCE Core, which excludes food and energy costs, rose by 4.7% in November, the fastest since 1982.
The Fed plans to cut the entire asset buyback program by March 2022,
and most of its executives expect three base price increases in the year that has already begun.
As neither the European Central Bank nor the Bank of Japan plans to tighten policy so far,
the dollar’s strength against the euro and yen is likely to continue, as the Trading Economics website points out.
On Wednesday, the Fed will release the minutes of the December 14-15 meeting of the Federal Open Market Commission (FOMC),
which could help market participants better understand the mood of central bank leaders.