The oil market is waiting for OPEC to respond to Biden’s decision and new indexes in US data
The oil market is waiting for OPEC to respond to Biden’s decision and new indexes in US data :Oil prices stabilized on Thursday, with traders evaluate US stock data ,
and await OPEC+’s retaliation after the US and several other countries decided to sell oil from strategic reserves.
Evest follows market developments in the following report.
Topics:
OPEC is considering suspending oil production increase
US oil inventories increased by 1.02 million barrels
Asian stock indices are trading in different directions
Low unemployment benefit applications for the first time since 1969
US GDP July September the worst since 2020
New home sales in the United States rose by 0.4%
OPEC is considering suspending oil production increase
Earlier this week, US President Joe Biden announced that his country intended to sell 50 million oil barrels from the Strategic Petroleum Reserve (SPR),
in coordination with China, Japan, India, South Korea and the United Kingdom.
ING experts report that the total volume of oil they plan to sell will be at least 71 million barrels,
equivalent to about 74% of the world’s average daily oil consumption in 2021.
The leaders of OPEC + – Saudi Arabia and Russia – should examine the possibility of suspending oil production after the US ,
and other countries decided to sell raw materials from reserves, according to the Wall Street Journal citing its sources. .
According to Bloomberg expert, “I expect the oil market to remain sideways until the OPEC + meeting on December 1 and 2.
A coordinated increase in production plan by the United States and other countries is unlikely to seriously alter the market supply and demand situation.”
Oil rises slightly
The cost of January Brent oil futures on the London Stock Exchange Futures is $82.34 per barrel on Thursday, $0.09 (0.11%) higher the closing price of the previous session.
As a result of Wednesday’s trading, these futures fell $0.06 (0.1%) – to $82.25 per barrel.
The price of West Texas Intermediate crude futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) is $78.34 per barrel,
$0.05 (0.06%) lower than the final value of the previous session.
By the end of Wednesday’s trading, the value of these futures fell by $0.11 (0.1%) to $78.39 per barrel.
US oil inventories increased by 1.02 million barrels
The US commercial oil reserve rose by 1.02 million barrels to 434.02 million barrels last week,
according to a weekly report from the country’s Department of Energy.
Gasoline inventories fell by 603 thousand barrels to 211.39 million barrels,
and distillate stocks decreased by 1.97 million barrels to 121.72 million barrels.
Asian stock indices are trading in different directions
Stock indices in the Asia-Pacific region show multi-directional dynamics on thursday.
Japan’s Nikai 225 index rose by 0.76%, Australia’s S & P/ASX 200 index added 0.15%,
China’s CSI 300 fell by 0.3%, and Hong Kong’s Hang Seng lost 0.04%.
Low unemployment benefit applications for the first time since 1969
Most US stock indices ended trading higher on Wednesday. Traders were evaluating a new statistical segment.
The number of Americans applying for unemployment benefits fell last week by 71 thousand – to 199 thousand for the first time in more than 50 years.
On the basis of Wednesday’s trading, the Dow Jones Industrial Index fell by 9.42 points (0.03%) to 35804.38.
Standard & Poor’s 500 rose by 10.76 points (0.23%) to 4701.46 points. The Nasdaq Composite Index rose by 70.09 points (0.44%) to 15845.23.
This is the lowest figure of unemployment benefits since November 1969, with the weekly number of applications set at 197 thousand,
and a week earlier, the number of applications was 270 thousand, with analysts expecting an average decline of 260 thousand applications.
US GDP July-September the worst since 2020
Revised data from the US Department of Commerce showed that the US economy expanded by 2.1% in the third quarter on an annual basis.
Earlier, a 2% increase was announced.
Analysts predicted an average revision of 2.2%.
The US GDP dynamics from July to September were the worst since the economic downturn in early 2020 due to the Covid-19 pandemic.
For comparison: The U.S. economy expanded by 6.7% in the second quarter of this year.
Final data from the University of Michigan showed consumer confidence in the United States,
declined in November to 67.4 points from 71.7 points the previous month.
This is the minimum value of the index over the last 10 years. The initial index was estimated at 66.8 points. Analysts expected 66.9 points to be reviewed.
US population incomes rose by 0.5% in October compared to the previous month,
according to data from the country’s Department of Commerce.
Meanwhile, Americans’ expenditures rose by 1.3%.
Analysts predicted an average increase of 0.2٪ previously and an increase of 1% per second, according to Trading Economics.
New home sales in the United States rose by 0.4%
The United States Department of Commerce said that sales of new homes in the United States rose in October by 0.4%,
compared to the previous month and reached 745 thousand homes at annual rates.
742 thousand homes were sold in September (an increase of 7.1% per month),
while the figure was previously 800 thousand (a 14% jump), according to the revised data.
Analysts did not expect last month’s average sales to change from the September level previously announced at 800000,
according to a survey by Trading Economics and MarketWatch.
Consumer confidence in the United States declined in November to 67.4 points from 71.7 points the previous month,
according to final data calculating this index released by the University of Michigan.
This is the minimum value of the index over the last 10 years.
The initial index was estimated at 66.8 points.
Analysts predicted a review to 66.9 points, according to Trading Economics reports.
MarketWatch participants expected no change from the previously announced level.