Oil continues to perform negatively.. and positive trading US and Europe

Oil continues to perform negatively.. and positive trading US and Europe: Oil tried to stabilize at the beginning of today’s Asian session
but was unable to do so as the market was exposed to many concerns that led to the decline of the dollar-denominated commodity
for the third session in a row since the beginning of the week.

Evest follows the commodity trading market and relays to you the top news in the following report.

Oil declines for the third session in a row

Oil prices fell on Wednesday for the third session in a row.

The market is under pressure from concerns about the rapid spread of the new Delta strain of the Covid-19 coronavirus in Asian countries,
including China, and expectations of weak fuel demand.

Brent crude futures for October on the London ICE Futures Exchange fell by $0.02 (0.03%),
to $72.39 per barrel. Brent crude fell $0.48 (0.66 percent) to $72.41 per barrel on Tuesday.

September futures for West Texas Intermediate crude were cheaper in electronic trading on the New York Mercantile Exchange (NEMX)
by $0.21 (0.03%), to $70.35 per barrel.

During the previous session, the future fell by $0.7 (1%) to $70.56 per barrel.

This week’s growing demand is accelerating the increase in oil production

In the meantime, OPEC + countries began to face growing demand this week by accelerating the increase in oil production:
Since August 1st, production has increased by 400 thousand barrels per day.

This trend will continue until the current restrictions,
which currently stand at 5.8 million barrels per day, are terminated.

At the same time, OPEC + ministers will continue to meet every month to confirm their assessment
of market conditions and the adequacy of the scenario adopted.

The decline in oil prices in the market since the beginning of the week is due to the spread of the coronavirus Delta variant
and concerns about new mobility restrictions.

In addition, industry morale data in the United States and China were disappointing.

Drone attack

A drone attack on an oil tanker off the coast of Amman, which occurred at the end of July, has failed to raise oil prices for the time being.

NATO called on Iran to comply with its international obligations.

A spokesman for NATO said on Tuesday that NATO countries, Great Britain, the United States,
and Romania had reached the conclusion that Iran was likely to be responsible for the incident.

The drone attack is considered explosive because it occurred on an important maritime trade route.

lg Ships sailing between the Persian Gulf and the countries of the European Union, among others, pass the coast of Oman.

Delta coronavirus in china

On the other hand, there is growing concern that China – a major global oil importer –
may reduce its purchases during the next wave of Covid-19 in the country.

The Delta type of coronavirus is spreading in China, which has led the Chinese authorities to take measures
and impose restrictions in combating this pathogen by increasing demand for fuel and limiting its import.

The city of Wuhan, central China, ordered a thorough screening of all its 11 million inhabitants for Covid-19
on Tuesday after discovering the first new local infections of coronavirus there in more than a year.

The city’s medical services reported on Monday that seven migrant workers had been infected.

These are the first new local cases recorded in Wuhan since the city managed to contain the first wave of the pandemic after an unprecedented lockdown that lasted for more than two months in the spring of 2020.

And the Delta coronary type was discovered in China in approximately 32 provinces in just two weeks.

At least 46 cities have advised their inhabitants not to travel unless absolutely necessary.

Mobility restrictions in this world’s leading economy pose a threat to demand.

Oil prices under pressure

According to experts, oil prices will remain under pressure at least until more information is available
on the spread of the coronavirus in the country.

With the rising spreading risks of Delta, analysts are already reviewing their expectations for global economic growth.

At the same time, oil prices may be supported in the short term by United States inventory
data on this commodity and its products.

The US Petroleum Institute (API) is expected to announce in its latest report
that US crude oil inventories fell by 879000 barrels last week.

Gasoline inventories fell by as much as 5.75 million barrels during this time.

The Department of Energy will release official United States fuel inventory figures later today, Wednesday.

West Texas Intermediate crude oil on the New York Stock Exchange reportedly lost 4.6 percent in the first two meetings this week.

Collective hikes for European indices in the morning session

Major European stock markets are expected to rise slightly on Wednesday at the opening,
following Wall Street, of strong corporate releases to offset concerns about the spread of the Delta variant
of the coronavirus and regulatory pressures in China.

Futures rose by 0.25% for the Dax index in Frankfurt, 0.21% for the FTSE index in London, and 0.26% for the EuroStockx50 index.

The first indices also indicate a rise of 0.22% in the Parisian CAC40 index at the opening.

positive performance in Wall Street.. The jobs report had a key role

On Wall Street, the S & P 500 index ended on a record close on Tuesday night,
backed by the special advance of Apple (+ 1.26%) and Eli Lily (+ 3.8%) stocks despite a decline in video games amid concerns about Beijing’s regulation.

Investors, who are still very interested in the evolution of the pandemic under the influence of a highly contagious Delta variant,
will follow Tuesday’s PMI and ISM activity indices in Europe and the United States for the services sector.

Another statistic that markets are eagerly awaiting is the publication of the ADP report at 12:15 GMT on job creation in July in the US,
in preparation for the official report to be published on Friday.

The evolution of the labor market on the other side of the Atlantic is a key factor in the course of the Federal Reserve’s monetary policy.

Last week, Central Bank President Jerome Powell said he wanted to see “strong job numbers” before he started cutting back on monthly asset purchases.

The United States index futures now indicate an unaltered opening,
but the trend may change as economic indices are issued before the bell.

Tuesday evening, the Dow Jones index rose 0.80% to 35116.40 points.

Standard & Poor’s rose 0.82% to 4423.15 points and the Nasdaq Composite rose 0.55% to 14761.30 points.

Oil continues to perform negatively.. and positive trading US and Europe

A sharp drop in the American crude oil

A sharp drop in the American crude oil: On Tuesday 3rd August 2021 the American petroleum institute declared
a drawback in crude oil by 879.000 barrels by the week ending on July 30.

Thus the American oil stocks fell to 55 million barrels in 2021, according to the (API).

Analysts expected a drawback in oil stocks by 2.900 million barrels this week.

While the API declared a drawback of 4.728 million barrels for the previous week.

Expectations were close to the expected amount for the week by 3.433 million barrels.

The API said that gasoline stocks drew back by 5.751 million barrels by the week ending on July 30 compared with the previous week’s drop by 6.226million barrels.

Distillate piles drew back by 717.000 barrels throughout the week besides a drop by 1.882 million barrels for the previous week.

Cushing stocks rose by 659.000 barrels this week compared with last week’s drop by 126.000 barrels.

Factors affected oil this week

West Texas intermediate crude stock fell on Tuesday due to fears from Delta variant,
especially in China where Wuhan’s 126.000 inhabitants will be examined to find out if there are any Covid- 19 infections amongst them.

China is the largest country in terms of virus spread since it began.

The virus spread over areas where no case was registered for months.

Crude oil prices for the week

West Texas intermediate crude stock fell by 0.15% by Tuesday afternoon before data publishing,
to reach 70.51$ in trades ( dropped by 1$ compared with the same time for the previous week)
while Brent crude fell to 70.51$ ( dropped by 2$ per barrel along the week)

Oil production weekly rates

Although American oil piles and prices are showing drawbacks, American oil production kept some balance to some extent.

The production rose from 11 million barrels per day at the beginning of the year to 11.2 million barrels per day this week.

Nevertheless, the 11.2 million barrels rate is less than the previous week by 22.000 barrels.

The biggest company in the Middle East studies selling more of assets

Some resources mentioned to Reuters that the biggest company in the Middle East controlled by the state including Saudi Aramco and ADNOC Emirates company desires to sell more of assets to investors in different fields of refineries and distillate in such a rise of prices.

The Saudi giant Aramco is studying the sale of its assets including a gas pipeline,
its shares in refineries and energy stations according to Reuters.

Bloomberg agency mentioned before that Aramco as the director of all oil and gas assets in Saudi Arabia by a franchise agreement with the Saudi Arabian state reduced its work in drilling for oil and production drew back. It may offer some shares in nonstrategic fields for sale to foreign investors.

Aramco made one deal by selling assets this year.

It sold its 49% share in the pipeline to a consortium controlled by Global Energy Partners which belongs to the American company EIG for 12.4 billion dollars.

IN the United Arab of Emirates ADONC is getting ready for the initial general offering of its share in drilling works,
it also aims at attracting foreign investors according to Reuters.

ADNOC has already got billions of dollars from energy assets including the sale of its 49% share in a gas pipeline in the last year for 10 billion dollars.

This deal was the beginning of the sale of assets by gulf oil producers who are looking forward to getting cash money and attracting foreign investors.

“Oman and Bahrain also are looking forward to getting money either by selling shares or public offering” Reuters mentioned.

In April 2021 Bloomberg mentioned that Oman was studying some choices to fill the gap in the budget
including the sale of the state oil company share OQ in the initial general offering.

And it tries to benefit from the international debt market to fund its expenses that would reach 7.9 billion dollars in the next five years.

Libya studies resuming its oil activities

“Libya’s Shell company studies resuming its work by contributing in developing oil fields and raising marketing activities and refining operations.”
Libya Herald on Tuesday, according to the statement by the NOC after a meeting with Shell’s representatives in Tripoli

Shell stopped its drilling operations in Libya in 2012, giving up excavations activities in two blocks because of disappointing results.

“NOC” the national oil corporation said that the negative evaluation by Shell doesn’t reflect the real.

Also, NOC mentioned that Shell representatives who visited Libya discussed the possibility of helping in improving oil fields in Libya,
the African member of OPEC. The two sides also discussed cooperation in improving refineries and renewable energy projects,
according to Mustafa Sanalla the chairman of NOC, by Libya Herald

“French Total energies as a big European company intend to increase its investments in Libya’s oil industry,
and it also discussed with the company raising Libya’s production of oil to its highest levels.” NOC at the end of last year.

Total energies own plenty of shares in Libya’s oil fields including the Sharara field, the biggest field in the country.

The field was closed with a number of other fields in the last year for more than eight months
after oil-exporting stations were surrounded by groups of Eastern government.

That made Libya reduces its products from more than 1.000.000 million barrels per day to less than 100.000 barrels per day.

“Libya would raise its production to1.6 million barrels per day by the first half of 2022 if the industry had the funding needed”.

Muhammad Oun oil minister in a statement to Italian agency Agenzia Nova

At the current time, the African member not included in OPEC’s reductions is producing about 1.2 million barrels per day.

According to OPEC’s latest monthly report, Libya’s crude oil average production reached 1.163 million barrels per day
in June compared with May’s production by 1.157 million barrels.

A sharp drop in the American crude oil

A new oil setback .. and negative trading on Wall Street and Asia

A new oil setback.. and negative trading on Wall Street and Asia

A new oil setback .. and negative trading on Wall Street and Asia: Oil declined by more than 3% yesterday, Monday,
and now it is starting the trading session, coming close to falling below the $70 level, which scares investors.

Evest follows all developments in the commodity trading market in the following report.

Oil continues to decline after yesterday’s setback

Oil prices declined after an initial recovery on Tuesday, with concerns about coronavirus restrictions, along with a slowdown in factory activity in major markets, affecting morale.

The October futures price for Brent oil on the London Stock Exchange on the morning of August 3 was $72.84. Which is 0.07% lower than the closing price of the previous session.

At the end of August 2, these futures declined by $ 3.3% to $ 72.89 per barrel.

The price of West Texas Intermediate crude futures in September in electronic trading on the New York Mercantile Exchange (NYSE) was US $71.2 as of the morning of August 3.

Which is 0.08% lower than the final value of the previous session. The day before these futures fell 3.6% to $71.26.

That is, both benchmarks fell more than 3% on Monday.

Economic risks to the main oil consumer

This follows the resurgence of economic risks to the major oil consumer, China, resulting from the Coronavirus pandemic.

Infections of a highly contagious delta variant have emerged in 14 of 32 provinces.

That could mean adding new mobility restrictions.

Analysts also pointed out that the slowdown in manufacturing activity as a major concern for both China and the United States affected prices as well.

Chinese economic activity continued to decline in July, as the Manufacturing Purchasing Managers’ Index fell to 50.4 from 50.9 in June.

Manufacturing activity also slowed in the United States, where the ISM index fell to 59.5 – the lowest reading since January – from 60.6 in June.

Asian stock markets were significantly negative on Tuesday, as the Coronavirus Delta variant swept through major markets and Chinese authorities taught video game producers, once again undermining investors’ confidence in mainland markets.

Iranian Ministry of Foreign Affairs

Meanwhile, the Iranian Foreign Ministry said on Monday that Iran would immediately respond to any threats to its security,
after the United States, Israel, and Britain blamed Tehran for an attack on an Israeli – run oil tanker off the coast of Amman.

Inventories of crude oil and United States products were likely to have declined last week,
with reserves for distilleries and gasoline expected to decline for the third week in a row, according to a preliminary Reuters poll on Monday.

Traders fear that the rapid spread of the new Covid-19 strain “delta” in Asian countries, including China,
will force countries to impose new quarantine restrictions, weakening the region’s economic recovery and oil demand.

The Indonesian government, the largest consumer of gasoline in Asia, announced on August 2 that quarantine restrictions in a number of regions would be extended until August 9 due to the high Covid-19 prevalence.

From July 3 to 25, during the first wave of quarantine measures introduced in the country after the emergence of the Delta strain,
Indonesia reduced its gasoline imports by about a quarter, according to Bloomberg.

On the other hand, there are accusations from Washington politicians that China may be the inventor of the coronavirus.

Dow Jones and Standard & Poor’s declined .. and the Nasdaq is stable

Tuesday is a fairly weak day in terms of economic news, so it’s expected that global market-constrained dynamics will remain ahead of Wednesday’s release of important economic data (country services PMI and US jobs growth estimate from ADP).

In the United States on Monday, the Dow Jones and Standard & Poor’s 500 index fell by 0.2-0.3٪,
and the Nasdaq added less than 0.1%, although positive dynamics prevailed at the beginning of trading.

Despite expectations of a strong economic recovery and a good corporate reporting season in the United States,
investors are concerned about the spread of new strains of coronavirus.

The positive factor for the market was the news that US senators approved an infrastructure spending project totaling about $1 trillion.

The project is bipartisan and could be approved by the Senate in the coming days.

The law provides for extensive investments in roads, bridges, ports, high-speed Internet, and other infrastructure.

It’s the first phase of President Joe Biden’s infrastructure plan. The document provides for expenditures of $550 billion over the first five years.

The US manufacturing business index (ISM Manufacturing) fell in July to 59.5 points (a half-year minimum) with a growth forecast to 61 points from 60.6 points in June. ISM Manufaction remained above the 50-point mark for 14 months in a row.

Meanwhile, the final value of the Purchasing Managers’ Index (PMI) in the industrial sector, calculated by IHS Markit, in July,
reached a record high of 63.4 points, rather than 63.1 points, as previously announced. In June, it was at 62.1 points.

A mass loss in Asia

On Tuesday, Asian stock indices were down (Japan’s Nikkei 225 drowning 0.5 percent, China’s Shanghai Composite -0.6 percent,
Hong Kong’s Hang Seng 0.3 percent) amid expectations of increased pressure on China’s technology sector.

The Japanese authorities extended the emergency in a number of areas until August 31,
and also announced their intention to tighten controls on tourists coming into the country.

A new oil setback .. and negative trading on Wall Street and Asia

A positive start in Europe and Japan.. And oil is stunning again

A positive start in Europe and Japan.. And oil is stunning again: Oil declined again despite last week’s gains,
with Chinese data showing weak prospects for economic recovery, potentially hurting demand.

Evest follows everything that happens in the commodity trading market in the following lines.

Oil declines on disappointing Chinese data

Oil prices declined this morning, Monday, as disappointing Chinese economic data put pressure on demand, according to market watchers.

The price of the North Sea oil barrel was $74.69 in early trading.

That was 72 cents less than it was on Friday.

The US oil barrel West Texas Intermediate dropped 62 cents to $73.33.

In the world’s second-largest economy, the mood of industry purchasing managers has deteriorated unexpectedly.

The value of an index published by Caixin trade magazine fell by 1.0 points to 50.3 points, the lowest level since spring 2020.

China is one of the major importers of oil. The gloomy mood in the economy may indicate lower growth and thus weaker demand in China.

According to Reuters, oil prices have declined because of concerns about the Chinese economy.

A survey showed factory activity grew at the slowest pace in 17 months.

This is indicated by the high cost of raw materials, the repair of equipment, and the extreme weather conditions that made trade activities more difficult.

Concern about China’s economic slowdown has also increased.

Concerns over increased oil production

Fears have also been exacerbated by increased oil production (production) from OPEC producers.

According to a Reuters survey, OPEC oil production rose in July to its highest level since April 2021.

This was accompanied by reducing production limits under the OSCE agreement with its allies and Saudi Arabia to cancel supply cuts.

The spread of the delta type of coronavirus played a part in all of this.

In parts of Asia, the number of infections is increasing, with concerns about restrictions on movement.

According to analysts, “China has led the economic recovery in Asia, and if this decline increases,
there will be growing concerns that the global outlook will deteriorate dramatically.

The prospects for crude oil demand are also precarious and are unlikely to improve until the global vaccination situation improves. “

In July, growth in China’s industrial activity fell sharply, with demand falling for the first time in more than a year, partly due to higher product prices.

Business research has shown the challenges facing the Global Manufacturing Center.

The weaker results of the private survey, which mainly covers export-oriented producers and small producers,
generally coincide with the results of an official survey published on Saturday, which showed that activity is growing at the slowest pace in 17 months.

Oil production from the Organization of Petroleum Exporting Countries (OPEC) rose in July to its highest level since April 2020,
as the organization eased restrictions under the OPEC + agreement, while Saudi Arabia, the largest oil exporter, refused to voluntarily cut off supplies.

Despite the continuing number of coronavirus cases worldwide, analysts say high levels of vaccination will limit the need for strict lockdowns, resulting in reduced demand during the peak epidemic last year.

Chief infectious disease expert Dr. Anthony Fauci said that the United States would not re-impose restrictions to limit the spread of COFID- 19,
but that “the situation will get worse,” as the Delta option contributes to an increase in the number of infections, mostly among the unvaccinated.

A positive start in Europe

Exchanges in Europe are renewing their all-time highs with strong results, while pressure from China eases.

Major European exchanges gained strength on Monday morning,
with the region’s benchmark index renewing its all-time highs once again.

The Stoxx 600 Index – which includes the largest 600 indexes listed in the region – rose 0.81% to 465.48 points, the largest rise in the day in more than a week.

In London and Madrid, the FTSE 100 and IBEX 35 are leading gains this morning,
in a day when China no longer put pressure on their companies last week on the European continent.

Also, driving factors is earnings season and US President Joe Biden’s budget plan for $550 million infrastructure,
which could be approved this week in the US Senate.

A big rise for the Japanese Nikkei index

The main index of the Tokyo Stock Exchange, Nikkei, rose 1.82% on Monday on a day when searches for deals were selective
as a result of last weekend’s accumulated losses.

The Nikkei Index advanced 497.43 points to 27781.02, while the broader Topix Index, which includes stocks with the largest capitalization, those in the first section, rose 38.97 points, or 2.05%, and remained at 1940.05 points.

The search for undervalued assets was the trend today after the benchmark index fell by almost 2.5% last week and reached its worst level in six months in light of the new daily infection records of Covid- 19 in Japan.

On a day of good workload, the Nikkei Index was always moving positively, and at some point even saw increases accumulated by more than 2%.

All sectors except air transport have advanced today, where freight and mining have led the gains.

Thus, the shipping company Mitsui O.S.K. Lines gained an important 10.61% today, and the steel company Nippon Steel, the world’s third-largest, rose by 5.52%.

On the other hand, textile giant Fast Retailing, owner of the clothing chain Uniqlo, lost 0.17%, despite the rise of Toyota Motor,
the world’s largest car producer, by 2.29%, and the Japanese video game giant’s trading improved by 1.73%.

For their part, the country’s two major airlines, Japan Air and All Nippon Airways (ANA),
declined by 0.83% and 0.78% respectively.

A positive start in Europe and Japan.. And oil is stunning again

Brent fourth consecutive monthly increase .. and a positive oil outlook

Brent fourth consecutive monthly increase .. and a positive oil outlook:

After several corrections, world oil prices strengthened last week.

This is under tight oil supply, accompanied by considerable market optimism about the prospects for a recovery in the world economy.

On Friday (30/7/2021), the price of Brent oil was at $ 76.33 per barrel, 0.37% higher than the previous day.

Since Thursday (29/7/2021), the price of Brent oil has stabilized above the US $75 per barrel

During the week, the price of Brent oil rose by 3.01%.

In the meantime, the price of West Texas Intermediate crude rose by 0.45% to the US $73.95 per barrel on Friday.

For the week, the price of West Texas Intermediate crude rose by 2.61%.

Brent posts a fourth consecutive monthly gain

Oil prices rose on Friday, with Brent crude posting its fourth monthly gain.

This evolution reveals how the world’s economies adapt to the coronavirus pandemic and the uneven severity of the delta variant.

Rising oil prices are due to demand growing faster than supply and the expectation that the worldwide vaccination will mitigate the impact of the re-emergence of Covid-19 infection worldwide, although the delta variant has caused new waves.

Brent crude futures for September, which ended Friday, rose by 28 cents, or 0.37 percent, to $76.33 per barrel.

The most active future in October gained 31 cents at $75.41 per barrel.

While West Texas Intermediate crude futures rose by 33 cents or 0.75% or $73.95 per barrel.

Both crude benchmarks gained more than 2 percent over the course of the week,
while Brent rose by 1.6 percent in July, its fourth monthly increase in a row.

West Texas Intermediate hasn’t changed this month.

Even as cases of Coronavirus infection increase in the United States, across Asia, and parts of Europe like Spain,
analysts believe that high vaccination rates will limit the need for strict lockdowns like those that destroyed demand during the worst moment of the past epidemic.

Carsten Fritsch, an analyst at Commerzbank, said: “The oil market no longer seems to consider the delta variable as a threat as it did early last week.”

He added: “The ongoing vaccination campaigns in industrialized countries inspire confidence
that any re-imposition of large-scale restrictions on movement will be prevented.”

Economies are becoming more resistant to Covid-19

Analysts are also pointing to a rapid recovery in gasoline consumption and industrial production in India,
following the disastrous increase in Covid-19 infections that hit its population earlier this year.

They see the country’s new scenario as a sign that economies are becoming more pandemic-resistant at the moment.

Oil prices will trade near $70 per barrel for the rest of the year,
supported by a global economic recovery and a slower-than-expected return of Iranian supplies.

An American report confirming the recovery of the economy

The Price Futures Group for brokerage services provided a report on demand for petroleum products
in the United States in May by the US Energy Information Agency (EIA),
which showed further evidence of recovery in the US economy.

The report stated: “It seems like the Covid- 19 never happened,” with demand almost returning to pre-pandemic levels.

Since the announcement of an agreement between OPEC and its partners in OPEC + in mid-July on a calculated increase in production,
no major producer seems to have sought to take advantage of high prices to flood the market.

So far, however, prices seem to have peaked near their highest levels in early July,
at $77.84 per Brent barrel and $76.98 per West Texas Intermediate crude amid doubts about the strength of the economic recovery.

The report noted that some countries that had so far been severely affected by the Delta variant,
such as the United Kingdom, recording a decline in new cases that had allayed some of the epidemic’s concerns.

The fact that Fed President Jerome Powell noted that the Corporation did not expect the spread of the delta variable
to have a significant economic impact “appears to provide some support for the economy and the market,” which could push prices to new highs.

US oil inventories are declining dramatically

US gasoline and crude oil inventories have declined sharply in the last week,
with Cushing crude stocks – the US crude distribution center – falling to their lowest level since January 2020, reflecting sharply higher demand.

ANZ analysts note that US aviation fuel consumption has reached its highest level since March 2020.

The results of a Reuters survey showed that OPEC oil production rose in July to the highest level since April 2020,
as the group continued to ease the agreement to limit production.

Trade sources said that Saudi Arabia, the world’s largest oil exporter,
is expected to raise the price of oil ores sold to Asian customers in September.

This is the second month in a row of increase, demonstrating optimism about the prospects for global oil demand,
especially in Asia, particularly China.

However, according to Reuters, oil prices will trade near $70 per barrel in the second half of the year,
supported by a global economic recovery and a slower-than-expected recovery in supplies from Iran.

Reuters said that the strongest momentum will be limited by the novel coronavirus variants.

Brent fourth consecutive monthly increase .. and a positive oil outlook

A new jump in oil prices and the Federal Reserve keeps interest rates unchanged

A new jump in oil prices and the Federal Reserve keeps interest rates unchanged: Oil rose again after a setback in the early part of the week,
coming close to ending this week on gains of more than 3%, backed by declining U.S. stocks,
giving the impression of better oil demand.

Evest follows what is happening in the commodity trading market in the following report.

Oil jumps by more than 1% in the morning session

The prices of black gold benchmarks continue to rise during today’s trading after rising the previous day to their highest levels in two weeks against the backdrop of declining energy reserves data in the United States.

West Texas Intermediate crude oil rose to $73 per barrel on Thursday morning, driven by a weaker dollar and shrinking reserves in the United States, which are currently at their lowest level since January 2020, the pre-pandemic period.

The price of West Texas Intermediate crude listed on the NIMEX Commodity Exchange in the morning segment
of Thursday’s session rose by about 1% and crossed the $73 limit per barrel.

At the same time, the price of Brent crude listed on the European ICE Exchange rose by about 0.8% and higher to $75.30 per barrel.

For now, it seems that the massive sell-off in the market caused by the hype associated with the OPEC+
items from over a week ago have already been avoided,
and the price of the commodity has returned upwards in the medium term.

The increased demand for fuel is confirming these upward trends, as evidenced by the decline in the latest reading of United States crude stockpiles.

The Government Energy Information Administration reported on Wednesday that U.S. crude oil reserves had fallen by another 4.089 million barrels last week, exceeding analysts’ expectations, adding some positive morale to the market.

Last week’s decline in US oil reserves by 4.1 million barrels is the lowest level since January 2020.

Gasoline inventories declined by 2.3 million barrels and distillates by 3.1 million barrels.

Expert forecast

On average, experts predicted a decrease in oil reserves by 2.5 million barrels, gasoline by 1.3 million barrels, and distillates by 1.6 million barrels.

Reserves in Cushing, where Nymex-traded oil is stored, fell by 1.3 million barrels during the week.

Although the current level of raw material stocks in the United States is the lowest since January 2020, that is, that is, in the run-up to the pandemic.

However, the status regarding the coronavirus is not over yet, as more fascism is emerging in many regions of the world.

In a number of Asian countries, such as Thailand, Indonesia,
and South Korea, increasing numbers of infections have been recorded,
which has no positive impact on future fuel demand.

The situation in South America

The status has also worsened in South America, and countries such as Argentina, Ecuador, Colombia, Cuba,
and Paraguay is facing a large number of deaths.

Despite the U.S. vaccination program, the U.S. economy still has a lot to catch up on in terms of hiring,
Federal Reserve Chairman Jerome Powell said Wednesday evening in a speech summarizing the two-day meeting of the Federal Open Market Committee.

According to the Central Bank, inflation may remain above 2% for a few more months.

This may contribute to a weaker US currency and support higher commodity prices.

According to experts, traders in the futures market are interested in purchasing oil futures,
but news from the coronavirus front does not allow oil to increase prices any further.

The price of Brent crude remains volatile on a small scale of $73 to $75 per barrel.

Jerome Powell makes unclear statements

Fed Chairman Jerome Powell noted that future decisions on inflation and interest rates
depend on the dynamics of the spread of the Delta coronavirus strain and the slowdown in the economic recovery.

Market participants wanted to hear about the timing of the QE program,
but Powell emphasized that he wanted to get strong employment numbers first.

In other words, the economy is moving in the right direction, but the conditions to start discussing changes in the bond purchase program are not yet in place.

There will be an estimate of GDP for the second quarter (expected to grow by 8.6% compared to the first quarter)
in the United States on Thursday, along with traditional data on initial claims for unemployment benefits.

The rising desire for global risk was facilitated by the recovery of inflationary expectations in the United States,
due to light Federal Reserve statements at the end of the meeting.

So far, the Federal Reserve is not even discussing the possibility of raising the key interest rate,
and reducing stimuli, according to Powell, is not a possibility in the near future.

It can therefore be expected that the regulator is still determined to reduce incentives no later than the end of the year,
even though it tends to do so very carefully and smoothly.

On Wall Street on Wednesday, stock indices were changed by 0.02-0.7% based
on the results of the Fed meeting and company reports.

According to the data, profits of 89% of the S&P 500 companies, which have already announced their results, exceeded analysts’ expectations.

The Federal Reserve keeps the interest rate unchanged

The Federal Reserve kept the interest rate on federal funds at 0-0.25% annually, in line with expectations.

the Board also said it would continue to buy back assets totaling $120 billion a month,
including $80 billion in US Treasury bonds and $40 billion in mortgage bonds, “pending significant progress towards employment targets and price stability.”

Fed Chairman Jerome Powell acknowledged that consumer prices are rising much faster this year than he and other Fed officials expected.

He said during a traditional press conference after the end of the July meeting of the U.S. Central Bank,
inflation is likely to be “higher and more stable than we expected.”

The Consumer Price Index (PCE), targeted by the Federal Reserve,
jumped 3.9% in May compared to the same month last year.

This was the highest increase in 13 years.

The Department of Commerce will release the June statements on Friday.

A new jump in oil prices and the Federal Reserve keeps interest rates unchanged

Oil prices rise back again, and American stocks lower by 4.728 million barrels

Oil prices rise back again, and American stocks lower by 4.728 million barrels: On Tuesday 27 July the American petroleum institute declared drawback in American crude stocks by 4.728 million barrels for the week ended on July 23.

According to the institute analyses, crude oil drew back near to 54 million barrels in 2021.

Analysts expected a drop in stocks by 3.433 million barrels through the week.

The institute declared a surprising rise in crude oil stocks reached 806.000 barrels for the last week, unlike the estimated drop by 4.333 million barrels.

Distillation outputs dropped by 1.882 million barrels through the week besides a drop by 1.255 million barrels for the previous week.

This week Cushing company stocks lowered by 126.000 barrels, unlike the previous week’s 3.567 million barrels drop.

Oil prices for this week

West Texas Intermediate crude oil trades prices lowered due to fears of the spread of the DELTA virus which would affect the speed of economic recovery and demand on oil.

West Texas Intermediate crude oil dropped by 0.56% on Tuesday before data were published.

At midday, West Texas Intermediate crude reached 71.51 dollars unlike the previous week’s drop in prices.

Standard Brent stock lowered by 0.19% to reach 74.36 dollars showing four dollars increase through the week.

Oil production rates for the week

‘In the USA the last direction shows a drop in oil stocks, that is why American oil production is rising slowly and its average now reaches 11.4 million barrels for the week ended on July 16.” According to the latest energy administration data.

American oil production averaged 11 million barrels per day for the first three weeks of the year.

The agency recorded a drop in gasoline stocks by 6.226 million barrels for the week ended on July 23,
unlike the previous week’s drop which reached 3.307 million barrels.

Venezuela ignores the American punishments

Venezuela keeps ignoring the American punishments and progressing in its plan for production increasing by 1.5 million barrels per day by end of the year (three times the current production rates).

In 2019 the USA punished Venezuela for its dictatorship.

Consequently, Venezuela was not able to produce and export oil naturally.

Also, it found difficulty in getting oil and distillation outputs products.

New Venezuelan imports reflect its interest in activating the oil industry.

With the existence of nearly 300 billion barrels of oil stocks, Venezuela owns the biggest oil stocks in the world.

The production reached 2.4 million barrels per day before punishments.

Now Venezuela needs to get its production rates back to make some balance in the national economy and increase job opportunities.

With some help, it succeeded in coming over some restrictions by its partnership with China.

China concord petroleum co, limited shares in the Iranian oil industry.

Now it seems that the company is sharing in the Venezuelan oil industry.

Although there are American threatens with punishing any organization helps in the petroleum industry in countries under restrictions such as Iran and Venezuela, Qatar petroleum company started working with Venezuelan oil companies besides china petroleum refineries in previous time in 2021.

IT brought more than 12 oil tankers last year to ship crude oil from Iran and Venezuela.

Already some punishment exceptions were set this year, in previous time this month the USA permitted importing
of liquefied gas from Venezuela, yet this was not permitted during the Trump period.

” The USA needs liquefied gas to be used in cooking instead of burning wood by Americans ”
Biden said in a statement.

in the next few months, it will be clear whether if the giant petroleum country will reach its goal of doubling its production three times or not,
as it is doing its best to activate its giant petroleum industry.

India shares in lowering oil prices.

India (the third world’s largest crude oil importer) is expected to join China in making use of oil stocks
to sell crude oil at low prices while there is a rise in world oil prices.

India criticized the OPEC production reducing agreement this year saying that India is not supporting the lower production
to keep prices high, also Indian officials criticized OPEC’S policy towards the market and high prices,
they also said that crude oil high prices would decrease demand on oil and make economic recovery generally slow.

“India studies selling half of its stocks to encourage private sector sharing in expanding its strategic storage capacity.”

Official resource mentioned to Reuters.

At the same time, some reports mentioned that China, the biggest oil importer in the world,
is trying to make use of its crude oil stocks.

“China launched more than 20 million crude oil barrels of its stocks to take control over the last rise in oil prices” according to last week’s magazines.

Also, the strategic oil reserves statement aims to take control over inflation.

Libya goes on its plan for increasing production to 2022

“Libya would raise its oil production to 1.6 million barrels per day by half of 2022 in case it gets the necessary finance”
Libyan oil minister Muhammad Oun in a statement.

At the current time, Libya (None listed on OPEC reducing production list) pumps nearly 1.2 million barrels in South Africa.

In June Libya’s average production reached 1.163 million barrels per day, unlike May’s production by 1.157 million barrels per day.

According to OPEC’s oil market latest monthly report secondary resources.

National oil corporation chairman Mustafa Sanalla said that Libya would be able to increase its production by the end of the year in case of keeping the national oil corporation out of touch again.

Libya surprised lots of market supervisors and maybe OPEC itself after being able to get back its production to 1.25 million barrels per day just in a few months while it was 100.000 barrels per day in September 2020.

The level of 1.25 million barrels was the same production Libya was pumping before the oil ports siege in January 2020, which lasted for eight months.

Even after lifting the siege in September and seizing fire in October Libya’s oil production has not been stable till now because of petroleum facilities guard strike protesting on not paying their salaries and lack of money for maintenance and restoration of oil infrastructure.

Oil prices rise back again, and American stocks lower by 4.728 million barrels

Brent approaching $75.. and the decline undermining the Japanese Stock Exchange

Brent approaching $75.. and the decline undermining the Japanese Stock Exchange: Crude oil is trying to advance today,
benefiting from a greater than expected decline in US inventories, as well as an improvement in the epidemiological status in some countries,
led by the United Kingdom.

Evest follows all this and more in the following report:

Oil is proceeding again, supported by the decline in US inventories

West Texas Intermediate crude is making modest gains near $72 after two days of decline.

The price of Brent oil for delivery in September was at the US $74.75 per barrel, US $0.27 higher per barrel during the session.

Oil prices rose slightly on July 28, mainly due to investors’ expectation that oil supplies would remain tight because of the caution of oil producers about the prospects for global crude oil consumption.

Despite cautious trading ahead of the Fed’s decision and concerns about rising infections of coronavirus worldwide,
high-yield oil continues to constrain growth.

The price of US crude oil rose by 0.50% during the day and is traded at the US $72.03 in search of new momentum.

Holding on to higher levels, black gold is boosting its spectacular recovery from the two-month low of $65.11 it recorded last week.

Expectations of a reduction in oil supply continue to support speculators at the West Texas Intermediate crude bulls.

This occurred after the American Petroleum Institute (API) announced a greater than expected decline in US crude oil inventories.

The American Petroleum Institute report showed that US oil inventories fell by 4.7 million barrels in the week ending July 23,
against expectations for a decline of 2.9 million barrels.

Fears of the rapid spread of the Coronavirus

However, looming concerns about the rapid spread of the coronavirus and that the International Monetary Fund (IMF)
has lowered its growth estimates for developing Asia are raising concerns about the outlook for oil demand and its products, which in turn affects oil prices.

The market is now awaiting a report from the Energy Information Administration (EIA)
on US oil inventories and the Federal Open Market Commission’s decision on new trading opportunities for goods.

The United States dollar remains high among its major competitors prior to the Fed’s decision.

After signs of decline emerged in the July 27 session, gasoline prices shifted sharply today as investors predicted a supply shortfall
and oil demand improved thanks to the Covid-19 vaccine injection programs.

According to analysts, maintaining high oil prices is what the oil-exporting countries want, and will not be easy to destroy.

OPEC+’s caution about increasing production after the group’s policy meeting in early July is a case in point.

Announcing an increase in production

Production was announced to increase by 400 thousand barrels per month from August to the end of 2021,
but at the same time, OPEC + also confirmed that it would continue to follow market developments to make appropriate adjustments.

This means that if the pandemic has a negative trend, demand for crude oil falls,
and OPEC + can prolong and further reduce production.

Concerns about a possible sharp increase in oil supply with the return of shale oil producers in the United States didn’t go as they had been expected.

In recent developments, UBS Investment Bank (Switzerland) experts have said that crude oil supply will be reduced by strong demand in the summer,
while supply has not improved as expected.

Oil prices have also strengthened economic growth prospects today, with recent forecasts showing that global economic growth is still in a positive direction,
despite negative developments in the Covid- 19 pandemic due to the Delta boom.

Positive signs of prevention and control of the Covid-19 epidemic when the UK just recorded the lowest number of Covid-19 cases in a single day since July 4.

This raised hope that Europe will soon have the new pandemic under control and pursue open plans to return to the economy.

Currently, investors are turning their attention to US oil inventory reports issued by the official US Energy Information Administration,
to obtain more data on the assessment of the evolution of the oil market. World Energy Consumption Outlook No. 1 economy.

Data from the American Petroleum Institute showed that crude oil inventories fell by 4.7 million barrels for the week ending July 23,
gasoline inventories fell by 6.2 million barrels, and distillation output inventories fell by 1.9 million barrels.

Japanese Stock Exchange declines after three consecutive sessions of the rally

After three sessions of the rally, the Tokyo Stock Exchange fell from its highs on Wednesday,
again worried about Covid – 19 in Japan and frantic ahead of the results of the US Federal Reserve Board meeting later in the day.

The main Nikkei fell by 1.39% to 27581.66 points, after widening its losses in the afternoon,
and Topix’s expanded index lost 0.95% to 19,119.65 points.

Tokyo, which is currently hosting the Olympic Games behind closed doors, recorded 2848 new cases of Covid-19 on Tuesday,
unheard of since the pandemic emerged more than a year and a half ago.

This figure, which more than doubled in seven days, could have been amplified in part by unreported
cases over the four-day weekend (from last Thursday to Sunday) marking the opening of the Olympics.

The New York Stock Exchange was also closed on Tuesday, especially its Nasdaq index,
with strong technological performance, while waiting for the Fed.

In China, the Hang Seng index recorded a small recovery, after two sessions of collapse
due to Beijing’s new regulatory tightening that affected various sectors of activity.

While the Shanghai Composite Index and the Shenzhen Composite Index remained in the downward trend.

Brent approaching $75.. and the decline undermining the Japanese Stock Exchange

Oil is getting better and negative trading in Europe .. and US markets are waiting for the Fed meeting

Oil is getting better and negative trading in Europe .. and US markets are waiting for the Fed meeting:

There is an upward bias in some Asian markets today, Tuesday,
but the markets of the People’s Republic of China are still under considerable pressure,
and oil prices are also rising, but with great restraint, as fears of an increase in delta variant infections dominate morale,
making oil highly conservative in its upward movements.

US and European index futures are traded in a nominal “minus”.

Markets will be waiting for affiliates’ news and statistics on Tuesday (there will be data on US durable goods orders in June),
and morale is likely to improve by the end of the day if the expected data are positive.

Evest follows what is happening in the commodity trading market, and relays them to you in the following lines.

Oil is rising and Brent approaching $75

As the trading session began on Tuesday, oil prices rose and the price of Brent oil approaching $75 per barrel.

The market is being supported by the prospect of limited supply and strong demand in the US,
offsetting concerns about the spread of the new strain of coronavirus ‘Delta’.

The cost of Brent crude futures for September on the London Stock Exchange ICE Futures on Tuesday is $74.81 per barrel,
$0.31 (0.42%) higher than the closing price of the previous session.

As a result of Monday’s trading, these futures rose $0.4 (0.54%) – to $74.50 per barrel.

The price of West Texas Intermediate crude futures for September in electronic trading on the New York Mercantile Exchange (NMX)
was $72.12 per barrel, which is $0.36 (0.29%) higher than the final value of the previous session.

As a result of prior trading, the value of these futures decreased by $0.16 (0.2%) – to $71.91 per barrel.

the Fed meeting approaches

The rise in oil prices is taking place against the backdrop of the weak US dollar as the Fed meeting approaches.

With the weakness of the US national currency, dollar-denominated assets, including oil futures,
became more attractive to currency holders, fueling interest in the assets, writes S&P Global Platts.

The increase in new coronavirus infections remains a critical issue in the oil market.

Despite new measures to the containment of the epidemic in some parts of the world,
demand for crude oil is now expected to continue to recover.

delta type of coronavirus has raised concerns

In the last few weeks, the most contagious delta type of coronavirus has raised concerns about demand in the oil market.

In July, the sharp rise in oil prices seen in May and June stopped.

During the month, price offers have been under considerable pressure at times.

Meanwhile, analysts say the rapid spread of the delta strain of coronavirus poses a major risk to the oil market,
with longer and stricter travel restrictions could be imposed.

According to media reports from other countries based on the White House statement,
the United States does not intend to lift entry restrictions.

This decision is due to the increase in the number of Covid-19 infections and the rapid spread of the new strain.

White House spokeswoman Jen Psaki told reporters on Monday that the increase in coronavirus infections “is likely to continue in the coming weeks,” prompting the United States to “maintain existing travel restrictions.”

The collective decline in European indices

European stock markets declined in the early stages of trading, in a session marked by the expectations
for the quarterly reports of major US technology companies and the first day of the Federal Reserve Board meeting

Tech stocks have affected Asian markets, with Chinese pressure increasing and holding on to the sector and the economy in general.

Milan opened with Ftse Mib down 0.18% and then worsened to -0.58%,
Paris lost half a percentage point, Frankfurt 0.80%, and Amsterdam 0.74%.

The federal meeting had a key role

In the United States, investors’ hopes are tied to the reports of the largest IT companies,
which will present their results for the second quarter of this week.

In addition, given the spread of the Covid-19 delta strain, the US Federal Reserve may use softer rhetoric as the economy may need longer-term support.

Stock indices rose by 0.03-0.2% on Monday, Stock indexes rose by 0.03-0.2% on Monday, the highest level ever before this week’s major events.

Investors are expecting quarterly reports from a handful of US companies, including tech giants Alphabet, Amazon.com, Apple, Facebook, and Microsoft.

The U.S. electric car manufacturer Tesla, which announced after the market closed, ended the second quarter of 2021 with record profits,
with both adjusted figures and revenue above analysts’ expectations.

Market participants are also focusing on the upcoming meeting of the U.S. Federal Reserve System (FRS),
the results of which will be announced on Wednesday.

On Thursday, the U.S. Department of Commerce will release preliminary GDP data for the second quarter.

Goldman Sachs experts predict a significant slowdown in the U.S. economic recovery in 2022, noting weak growth in activity in the service sector.

According to Goldman forecasts, the US economy will return to directional economic growth rates – 1.5-2% – in the second half of next year.

The bank also lowered its forecast for an increase in US GDP for the third and fourth quarters of this year by one percentage point – to 8.5% and 5%, respectively.

Mixed trading in Asia

On Tuesday in Asia, the dynamics of stock indices were mixed (Japan’s Nikkei 225 index rose by 0.5%,
China’s Shanghai Composite fell by 2.4%, Hong Kong’s Hang Seng lost 3.5%), and US stock futures (S&P 500 fell by 0.3%).

Oil is getting better and negative trading in Europe .. and US markets are waiting for the Fed meeting

The concern is again expressed in the oil market and a loss of 1% at the beginning of the week’s sessions

The concern is again expressed in the oil market and a loss of 1% at the beginning of the week’s sessions:

Oil fluctuates again today, losing over 1% of its value with the number of infections of the Covid-19 delta variant continues to increase.

Evest follows the updates in the commodity trading markets and relays them to you in the following lines.

Oil declines as concerns increase over delta variant

Oil prices declined by more than 1% on Monday,
as market morale was again affected by fears of lower demand after seeing an increase
in the number of new coronavirus infections in several countries, in addition to the widespread flooding in China.

Tension in oil markets has been heightened by information over the weekend that some countries have seen a record daily increase
in the number of new infections, which has prolonged original actions against the pandemic.

If the situation continues to evolve in this direction, it could mean lower oil demand in the near future.

China, the world’s largest oil importer, has also recently seen an increase in the number of new coronavirus infections.

In addition, the country in the eastern part was hit by cyclones and heavy flooding.

The price of the Brent North Sea oil mix with the September future was the US $73.30 per barrel by 9.00 a.m.

Central European Time. Compared to the previous session, this is a decrease of 80 cents (1.08%).

US West Texas Intermediate Light Crude was $71.25 per barrel.

Compared to the previous session, this is a decrease of 82 cents, or (1.14%).

Brent crude

Last Friday, Brent crude rose $0.31 (+ 0.42%) to $74.1 per barrel.

While West Texas Intermediate crude rose by $0.16 (+ 0.22%) to $72.07 per barrel.

Brent crude futures rose by 0.69% last week and West Texas Intermediate crude – by 0.71%.

The panic over the rapid spread of the delta strain of coronavirus ended by the middle of last week,
with traders saying the acceleration of vaccines reduces the likelihood of new restrictive measures.

But fears have rebounded today, especially as the number of the new variant infections has increased.

The panic over the “delta” variant of the coronavirus and its effects on the demand recovery,
an initial impression made by the middle of last week.

However, it is not so much that they cannot influence oil prices.

Some experts believe that fears of falling demand are too early, and if not today, oil prices will continue to rise tomorrow.

They support these claims by maintaining sustainable basics and continuing vaccinations.

Fears are growing that the new type of coronavirus (Covid-19) infection, which has increased again in many countries,
will negatively affect the recovery of the world economy, and that increased oil demand has been affecting lower prices.

In many countries, new measures and restrictions have been announced
to prevent the increase in the number of cases caused by the delta variant,
the most contagious type of Covid-19, while the variant in question is said to be particularly
prevalent in areas where vaccination is disrupted.

The Chief Health Adviser

The Chief Health Adviser to U.S. President Joe Biden
and the Director of the U.S. National Institute of Allergy and Infectious Diseases,
Dr. Shark Anthony Fosse, in his assessment of CNN yesterday,
shared information that those who refuse vaccination are leading the country into an “unnecessary predicament,”
and stressed the need to wear masks again with the increase in cases and to issue vaccines to reinforce them.

He stressed that the immune system is being actively evaluated in some departments.

On the other hand, experts point out that the decision of the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC + group,
which consists of some non-OPEC oil-producing countries, to increase oil production by 400 thousand barrels as of August,
coinciding with the period when the increase in the number of Covid-19 cases worldwide may have helped to shrink the market.

A mixed session for major exchanges in Asia and the Pacific

Tokyo Stock Exchange (+ 1.04%) was the only positive place on the continent’s stock exchanges.

While other Asian exchanges have had some decline today.

Shanghai and Hong Kong Stock Exchanges declined sharply by 2.8% and 3.52%, respectively.

In Chinese markets, sales have been triggered by investor fears that the Beijing government would
clamp down on companies that have posted the highest growth in recent years, starting with the private education sector.

The mood was also different because of a new turn on the part of Beijing against the technology sector,
where Chinese internet giant Tencent was suspended for anti-competitive practices in music rights.

Negative references also came from Taiwan (0.96%), Seoul (0.91%), Mumbai (0.05%) and Singapore (0.68%).

The Sydney Stock Exchange maintained its trading unchanged.

Europe and Wall Street

On the other hand, futures in Europe and Wall Street are positive two days after the Fed’s decision on interest rates and monetary policy in the United States.

Managers’ trust in Japan’s manufacturing sector is in line with estimates Germany is expected to have economic confidence today,
while the Dallas Fed Manufacturing Index and Services PMI are coming from the US, as well as the Tesla quarterly report.

The Tokyo Stock Exchange remained closed last Thursday and Friday,
owing to two consecutive public holidays in Japan coinciding with the opening of the Olympics.

An analyst commented to AFP: “Investors repurchased securities encouraged by gains on Wall Street.

Everyone welcomed the initiation of the Olympic Games series.

“Uncertainty regarding the Olympics has been a negative factor for the Tokyo market, but the concern is waning,” he added.

On Monday, Olympic organizers counted a total of 140 cases of Covid- 19 since July 1st out of tens of thousands of people participating in the Olympics,
coming from Japan or abroad (athletes, administrators,
support staff, media representatives, etc.), Which is a very low rate.

The concern is again expressed