A bad day in Wall Street.. Oil is rising, supported by expectations of increased demand from China

A bad day in Wall Street.. Oil is rising, supported by expectations of increased demand from China :

On Wednesday, at their interest rate meeting, monetary observers in the United States stuck to their historically lax monetary policy- as it was generally expected, prompting markets to interact with this event.

 

Through the following lines, Evest is following up the echo of this decision on markets,
in addition to the latest developments in the oil market.

 

Oil is taking advantage of increased demand from China

Today, oil prices rose amid signs of rising demand for oil in major markets.

 

The cost of Brent crude futures for June in the London Futures Exchange reached $ 67.44 a barrel,

$ 0.17 (0.25%) higher than the closing price of the previous session.

As a result of Wednesday’s trading, these contracts rose by $ 0.85 (1.3%) to record $ 67.27 a barrel.

 

The price of West Texas Intermediate crude futures for June in electronic trading in the New York Mercantile Exchange (NIMEX) reached $ 64.01 a barrel, $ 0.15 (0.23%) higher than the level at the closing of the previous session.

Yesterday, the value of these contracts increased by $ 0.92 (1.5%) to record $ 63.86 a barrel.

 

According to Bloomberg, in the United States, the demand index for petroleum products has increased to its maximum during 2 months.

At the same time, US Department of Energy data, published yesterday,
showed the maximum decrease in distillation inventories in the country since the start of March.

The US Department of Energy

The US Department of Energy announced that US oil reserves rose by 90,000 barrels last week.

Gasoline inventories increased by 92,000 barrels, while distillation output inventories declined by 3.34 million barrels.

China

In China, fuel consumption may increase in light of the upcoming long weekend,
as the population of the People’s Republic of China usually travel actively during holidays.

 

Reuters

According to Reuters experts, although the Covid-19 pandemic continues to hit several parts of the world, the demand for oil is steadily recovering thanks to increasing consumption in the United States and China’s mainland.

 

Earlier this week, OPEC + countries retained their previous decision on April 1 to gradually increase production in May and July.

OPEC + will decide production levels for August, by the end of June.

 

While the prospects for better economic development in the leading industrialized countries support oil prices,
prices have also been curbed at the same time by fears that the Corona crisis will continue to develop.

In particular, it has been argued in the market that the sharp increase in numbers of new infections in India has alarmed investors, as South Asian countries are one of the world’s major importers of oil and they are struggling against Corona pandemic like any other region in the world.

 

Although the increasing number of new Corona infections in India, Japan, and Brazil, for the first time,
there is a growing hope that demand for oil will rise in the coming summer months.

Progress in vaccination in North America and Europe was primarily responsible for this.

 

A bad day in Wall Street

Yesterday, the United States stock market performance was bad, as all 3 major indexes declined.

 

The Dow Jones Industrial index closed 0.5% down at 33.820 points.

The Standard and Poor’s 500 indexes recorded a further record high of 0.57% at 4201 points during trading,
but it fell again at the end of trading and it retreated by 0.1% to record 4183.18 points.

 

The heavy tech Nasdaq index fell by 0.42% to reach 13901 points.

 

The mood did not help the fact that the United States Federal Reserve Board left the main interest rate at 0-0.25%
and it did not change the assets purchase program too.

Jerome Powell

Fed Chairman Jerome Powell stressed that, despite the improvement of the economic situation, they were still far from being satisfied.

The rapid reporting season is well underway, as Apple, Alphabet the parent company of Google, and also Facebook, have reported remarkable results.

 

For his part, President Joe Biden put his $ 1.8 trillion plan to boost social spending and consider raising taxes on the richest population, at the Congress table.

 

On the macroeconomic front, indicators of US GDP and demands for unemployment benefits are expected.

 

In particular, investors are focusing on US private consumption figures during the first quarter of 2021,
US outstanding house sales and the European Central Bank’s cash supply in March.

 

Positive sentiments in Asian markets.. Tokyo is closed today

For the second day, Asian markets gain, as investors are reassured by the investment plan announced by the US president,
Joe Biden, besides the effects of US tech giants’ results on American markets.

 

This satisfaction also comes from the absence of something new fundamental at the Fed meeting, which is not currently assessing the possibility of considering a planned decrease in economic support with the Covid-19 pandemic.

In Asian markets, trading sentiments were good, as Shanghai Stock Exchange rose by 0.3%, while Hong Kong Exchange rose by 0.6%.

Australian stock market rose by 0.3%, while the Korean Kospi and Singapore indexes are stagnant.

The Japanese stock exchange is closed because of holidays.

 

DAX may not be positively moving today

The opening of European exchanges is expected to be positive today,
supported by the assurances reached on Wednesday by the Federal Reserve and quarterly reports of tech giants which were higher than expected.

 

June futures on FTSE Mib rose by 0.32%, compared to Eurostoxx 50 by 0.23,
which are similar to the contracts of major European indicators.

 

On the other hand, the United States Federal Reserve’s commitment to its historically lax monetary policy
should not drive the German benchmark as it did in Wall Street on the day before.

Oil is supported by OPEC and expectations of a recovery in demand.. Asian indicators are green

Oil is supported by OPEC and expectations of a recovery in demand: At its last meeting,
OPEC recommended maintaining its decision taken this first month,
to gradually increase production over the next two months,
which led to support for oil prices to rise again after the crises which they recently witnessed
as a result of the bad global epidemiological situation, particularly in Asia.

At the same time, announcements for companies’ financial results continue to receive widespread attention among traders.

 

Evest is following up with you all this and more on a daily basis,
and it presents details in the following lines.

 

OPEC’s decisions support oil prices amid a difficult epidemic atmosphere

Today, oil prices rose, after OPEC Alliance Control Group recommended maintaining the April 1 decision
to gradually increase production in May and July.

June

June futures price of Brent oil on London Futures Exchange recorded $ 66.08 a barrel,
0.32%higher than the closing price of the previous session.

West Texas

The price of West Texas Intermediate crude oil futures in June at electronic trading on the New York Mercantile Exchange (NYMEX),
was $ 63.20 a barrel, 0.41% higher than the level of closing in the previous session.

OPEC

Oil prices rose after the OPEC + control group recommended commitment to plans to return 2.1 million barrels of crude oil daily
to the market in three phases from May to July.

This volume includes 1 million barrels a day, which Saudi Arabia voluntarily cut its production earlier.

 

The Organisation of Petroleum Exporting Countries (OPEC) and OPEC Group,
which consists of some oil-producing countries out of OPEC referred to a strong global economic recovery.

 

OPEC countries hinted that the global economy is recovering and this recovery is expected to be accelerating during the second half of the year,
at today’s 16 ministerial meetings, but with a surprise that began yesterday.

This recovery is expected to be accelerated in the second half of the year during May and June.

They decided to continue this plan to phase out daily oil production cuts for July.

Reuters

Analysts of Reuters said: “they seem to have looked at the situation in India and Brazil and decided that these are”real” risks,
but now there is still a possibility of increased demand”.

 

The rapid spread of the Covid-19 virus in India led to a halting in the rise in oil prices due to low fuel consumption and refining volume in the county,
which is the world’s third-largest oil consumer.

However, the market expects that sustained economic recovery in the United States and China will exceed this effect.

Indian Ministry of Health

According to the statement issued by the Indian Ministry of Health, 352,991 cases were monitored during the last 24 hours,
while the total number of cases was about 18 million.

The daily number of cases in the country was at its highest level ever around the world since April 22.

 

On the other hand, the American Petroleum Institute stated that US oil inventories rose by 4.3 million barrels last week,
while gasoline inventories declined by 1.3 million barrels and distillation products decreased by 2.4 million barrels.

 

Today, official oil inventory data will be issued by the United States Energy Information Administration.

 

Positive outlook from Goldman Sachs for oil and gold

The American Goldman Sachs Bank expects a further 13.5% rise in raw materials in the coming 6 months,
thanks to a reversal of restrictions due to the virus all over the world,
and it also predicts low interest rates and a weaker dollar.

 

Now, the bank expects that the price of a barrel of Brent oil will rise to record $80,
while the price for a barrel of West Texas Intermediate oil will be $ 77 during that six-month period.

 

The bank said: “We expect the biggest jump in oil demand in history,
with an increase of 5.2 million barrels a day in the next 6 months”,
citing the acceleration of vaccines in Europe and the freedom of travel movement.

 

The bank added that the easing of international travel restrictions in May would witness global demand recovery for aviation fuel by 1.5 million barrels a day.

 

The Bank expects $ 2,000 an ounce for gold in the coming 6 months.

It said it is too early for Bitcoin to compete against gold to seek safe haven, adding that the 2 could coexist.

 

The bank said: “while Bitcoin benefits from increased liquidity,
it suffers from actual underutilization and a weak degree of environmental,
social and governance, owing to its high energy consumption”.

 

The bank added that such intensive use of energy makes the cryptocurrency vulnerable to losing its value store demand to a better-designed competitor.

 

Although China will continue to play an important role in the demand for raw materials,
the bank added that it is not expected to be the only major source of growth in the next decade.

 

Positive tradings in Asian Exchanges

Today, Asia was determined by moderately positive stock-index dynamics, as Japan’s Nikkei 225 index rose by 0.2%.

 

Both China’s Shanghai Composite and Hong Kong’s Hang Seng indexes rose by 0.3%.

Tokyo Stock Exchange

Today, Tokyo Stock Exchange slightly rose, supported in particular by a weak yen,
a favorable exchange rate move for Japanese-issued stocks,
but caution prevailed before the end of the US Federal Reserve Board meeting.

 

Today, official data showed a rise in retail sales in Japan by 5.2% in March compared to the same month last year.

Compared to February, prices of retail sales rose by 1.2%.

Experts predicted an average increase of 4.7% and 0.9% in a row.

the United States Central Bank

After the April 27-28 meeting, the United States Central Bank is likely to confirm that it intends to continue buying assets
of the same size until “significant progress is made” in moving towards the targets of maximum employment and price stability goals.

 

At the same time, experts who were interviewed by Bloomberg, believe that even before the end of this year,
the Federal Reserve will declare plans to reduce monthly operations of gradual rebuying for assets as a part of the quantitative facilitation program,
as the US economy quickly recovers from the crisis caused by the coronary virus pandemic.

 

Now, experts expect an increase in the basic interest rates in the range of 0.0% to 0.25%annually, but not before 2023.

An unexpected rise in US oil inventories

An unexpected rise in US oil inventories: Yesterday, Tuesday, April 27, 2021,
the American Petroleum Institute announced a significant increase in crude oil inventories,
which reached 4.319 million barrels for the week ending April 23rd.

Analysts had expected inventories to increase by only 659,000 barrels this week.

The American Petroleum Institute

The American Petroleum Institute announced an increase in oil inventories by 436 thousand barrels in the previous week
after analysts had expected a decline of 2.860 million barrels.

The API also announced that gasoline inventories fell by 1.288 million barrels for the week ending April 23
– after the previous week’s withdrawal of 1.617 million barrels.

Analysts had expected an increase of 508 thousand barrels for this week.

Distillate stocks were subject to a decrease in inventories this week by 2.417 million barrels over the course of the week,
after last week’s increase of 655 thousand barrels.

Oil prices this week

Oil trading prices rose the day before the data was released despite the huge increase in the number of people infected with Coronavirus in India,
the third-largest importer of oil in the world, after it was decided during the OPEC meeting to cancel
the regular ministerial meeting that was scheduled to be held on Wednesday,
with a recommendation, No changes were made to the group’s production share in May.

Before midday, WTI was trading at $ 62.87, or an increase of 1.55% on the day and about $50 a barrel higher than at this time last week.

Brent crude was up at $ 66.39 a barrel, or 1.13% higher for the day.

After the data was released, at midday, WTI was trading at $ 63.24 while Brent crude was trading at $ 66.75 a barrel.

Weekly production rates

While crude oil inventories rose significantly this week, US oil production stood at an average of 11.0 million barrels per day for the week ending April 16,
according to the latest data released by the Energy Information Administration.

Cushing’s inventory numbers also increased by 742,000 barrels.

OPEC maintains its steadiness to reduce production

The OPEC group will not hold a full ministerial meeting on Wednesday as scheduled,
as agreed by delegates in the Joint Ministerial Monitoring Committee in their meeting yesterday,
which indicates confidence in the current plans to ease production cuts as of May despite the high cases of Coronavirus in India,
the main petroleum importer.

Oil prices rose on Tuesday morning due to news issued by Vienna indicating that OPEC believes
that the market will be able to absorb the increase in oil supply as of 1st May,
despite the increasing cases of Coronavirus infection in the third-largest oil importer in the world, India.

In the previous ministerial meeting, OPEC decided in early April to gradually return more than
one million barrels per day to the market during the period from May to July.

Saudi Arabia

Saudi Arabia will also begin to cancel its additional unilateral cut of 1 million barrels per day,
starting with an increase in production by 250,000 barrels per day in May.

OPEC said that the Secretary-General “highlighted the positive path of the global economy,
along with stimulus measures, progress in the field of vaccinations and the summer travel season,
as driving forces to improve the outlook for oil demand in the second half of the year.”

After this month’s meeting was abandoned, OPEC ministers are scheduled to hold their next meeting in early June.

Exxon’s discovery of a new oil area

ExxonMobil and its partner Hess announced the discovery of a new oil point in the Stabroek Block,
a discovery that would add to the 9 billion barrels of oil equivalent that have already been announced in more than a dozen discoveries in the region.

Exxon said in a statement that the latest oil discovery was made at the Uaru-2 well,
which showed high-quality reservoirs carrying oil including newly identified periods under the original Uaru-1 discovery,
which was discovered in January 2020, which is the sixteenth discovery at Stabroek Block.

Exxon and its Stabroek Block partners made more than a dozen important discoveries in the region in less than five years,
making Guyana the newest oil-producing country in December 2019.

Exxon and Hesse expect to implement at least six projects online by 2027 and see the possibility of up to 10 floating ships
for storing and offloading production to develop existing recoverable resources offshore in Guyana.

Last month

Last month, Guyana President Irfan Ali said that the first phase of the offshore LIZA project – the first oil-producing project in Guyana led by ExxonMobil –
had reached its full planned production capacity of about 130,000 barrels per day (BPD).

The second phase of the LIZA project is designed to pump up to 220,000 barrels per day (BPD) with a floating, production,
storage and offloading vessel (FPSO), with startup expected in the middle of next year, Exxon says.

Guyana is one of the top priorities in the U.S. supermajor’s strategy to focus on high-return and cash-generating projects
that would allow it to grow its dividend through 2025.

Last September, Exxon said it had made the final investment decision on the Payara offshore field in Guyana,
expecting Payara to yield up to 220,000 BPD of crude when commercial production begins in 2024.

The attack on an oil tanker on the Syrian coast

The Syrian Ministry of Oil stated through the media, that a drone attack set fire to an oil tanker close to the Syrian coast,
and the Ministry suspects that the attack came from the Lebanese coast.

A news channel quoted an Iranian TV station report as saying that the tanker was Iranian, suffering some losses.

However, another Iranian media outlet, Tasnim Agency, said that “the accident happened to another ship …
and it has nothing to do with a ship carrying Iranian cargo.”

TankerTrackers

TankerTrackers .com confirmed that the tanker that was struck was not an Iranian ship, but a Lebanese ship.

The tanker that was seen burning today near the coast of Benias is not an Iranian ship,
but a Beirut-registered oil tanker called WISDOM.

The Iranian supertanker “Arman 114” (like ADRIAN DARYA-1) helped unload 300-350 thousand barrels at one time. Due to depth restrictions.”

The Syrian media initially expressed doubts that the attacks were carried out by the Israeli army,
but Israeli media reported that the fire on the tanker was not the result of an Israeli attack.

With regard to human losses, the Syrian Observatory for Human Rights said at its headquarters in Britain
that at least three people were killed in the attack.

The “Times of Israel” newspaper said the fire was quickly extinguished, and there were no reports of injuries.

Wall Street

The Wall Street Journal previously reported that the Israeli army had been targeting Iranian oil tankers heading to Syria on several occasions,
quoting officials in America and the Middle East as saying that Israel is concerned that oil profits finance regional extremism.

Iran is the largest supplier of crude oil to Syria.

Israel has been fighting Iran’s influence in the Middle East for decades,
and now with Iran’s alliance with Syria, Syria has become a target of repeated attacks from Israel.

An unexpected rise in US oil inventories

Oil rises with the support of OPEC.. The epidemiological situation in Asia is negatively affecting the stock market

Oil rises with the support of OPEC: Today, new developments are taking place in the economic landscape,
as oil has been able to rise again with the support of statements by OPEC
that oil demand expectations have been improved during the current year.

 

India’s bad epidemiological situation continues to cast a shadow on the Asian stock market, amid a decline in most the Asian indices,
and expectations of following European indicators for stock exchange performance in Asia.

Evest is following daily what happens in markets, and it tries to transmit it to you to help you make the right decision when trading.

 

Oil is rising on the back of positive statements by OPEC

Today, Oil prices rose amid improving demand expectations for this year by the OPEC + Technical Committee.

 

In London Futures Exchange, the cost of Brent crude futures for June was $ 66.01 a barrel, $ 036 (0.55%) higher than the closing price of the previous session.

As a result of Monday’s trading, these contracts retreated by $ 046 (0.7%) to record $ 65.65 a barrel.

 

The price of West Texas Intermediate crude futures for June in electronic trading in the New York Mercantile Exchange ( NYMEX) was $ 62.26 a barrel, $ 0.35 (0.57%)higher than the level of closing of the previous session.

On Monday, the value of these contracts declined by $0.23 (0.4%) to record $ 61.91 a barrel.

 

Rising oil prices come against the backdrop of OPEC + decision to postpone the Oversight Committee meeting until April 27.

OPEC notes a decrease in the market surplus of raw materials, however,
an increase in the number of Coronavirus cases in India may lead to lower demand for oil.

On Monday

On Monday, delegates at the meeting said that Technical Committee experts raised the forecast for oil demand growth in 2021
to 6 million barrels a day from 5.6 million barrels a day that was expected in March.

 

At the same time, they believe that the excess reserves of oil that were formed in the global market during the epidemic
will completely disappear by the end of the current quarter.

OPEC Secretary-General Mohamed Barkindo also said that the outlook for the oil market was improving,
referring to “positive indicators for the world economy”.

However, he stressed that there were many factors that required constant observation and vigilance.

 

The Technical Committee of OPEC + had also warned that the difficult epidemiological situation in India,
Japan and Brazil could limit the increased demand for oil.

Reuters analysts

According to Reuters analysts, OPEC +countries which will meet this week should take growth prospects in China,
the United States, Europe, and negative signals from India and many other regions, into consideration.

 

OPEC + countries that support increasing production under these circumstances will be able to find compelling arguments for their position.

 

On the other hand, the Indian government had ordered the army to help in combating Coronavirus, while countries such as Britain, Germany, and the United States had promised to assist.

 

If a country such as India is able to control the increase in the daily numbers of Covid-19 infections, this will mean a breakthrough for oil prices,
mainly due to the increase in the numbers again in the most oil-demanding countries, mainly India, in addition to the epidemiological situation in some other Asian countries such as Japan.

 

The collective decline for Asian indicators

Today, Asia’s main stock exchanges retreated, as the number of Coronavirus infections,
which is increasing again in some countries, overshadows prospects for further economic recovery.

In addition, some investors continue to gain profits.

 

Leading indicators had been declined in the Asia-Pacific region, like risk-taking and economic expectations
had been worsened due to rising numbers of patients in some countries such as India.

Bank of Japan did not change its monetary policy as was expected,
but it lowered its forecast for its core inflation for the fiscal year 2021 from 0.5% to 0.1%.

 

Japanese leading Nikkei 225 index had recently decreased by 0.2%.

The CSI-300 index, which includes the top 300 companies listed in mainland China exchanges,
declined by a half percent, while in Hong Kong, Hang Seng Index recently lost 0.2%.

In Sydney, the stock exchange fell by 0.23%, while Seoul retreated by 0.11%.

 

American losses and expectations of positive tradings today

Yesterday, US exchanges remained close to their last high records.

However, the Dow Jones Industrial index gave up its opening gains during trading and closed at minor losses.

The Standard and Poor’s 500 indexes declined again after it achieved a record level.

In general, trading was very quiet and within narrow trading margins.

Dow Jones Industrial index

The Dow Jones Industrial index fell by 0.18%, while the Standard and Poor’s index fell by 0.22%,
and the Nasdaq Composite Index retreated by 0.87%.

Futures indicators are likely to slightly rise for today’s opening.

The Federal Reserve Open Market Committee will meet for 2 days, starting from today.

Monetary policy is not expected to be too lax, but investors will pay close attention
to Fed Chairman Jerome Powell’s press conference, especially as inflation rises.

 

Expectations for the start of European indicators in the red zone

Analysts expect that the FTSE index in London will decline by 13 points, the DAX index in Frankfurt will fall by 32 points,
and the CAC index in Paris will retreat by 15 points, while the FTSE MIB index in Milan may rise by a few points.

 

HSBC, Europe’s largest bank, based in London, released its first-quarter report: Revenues fell short of expectations,
but its pre-tax profits rose by 79% to $ 5.8 billion, exceeding the forecast of $ 3.34 billion.

 

In Europe, reports from BP, UBS, ABB Schneider Electric, Novartis, and Whitbread will be more interesting during the day,
while in the United States, the market awaits reports from Alphabet, Microsoft, Starbucks, and AMD.

Markets are watching epidemiological situations and OPEC meetings.. Negative performance for oil and some Asian exchanges

Markets are watching epidemiological situations and OPEC meetings: Today, a strong start of a week, as there seems to be a lot on markets,
headed by the upcoming OPEC meeting and completion of corporate results announcement in addition to epidemiological situation hitting a number of Asian countries especially in Japan and India.

 

Evest is following up all of this on a daily basis and it transmits it directly to you to help you make wise decisions for trading.

 

Oil begins this week on retreating

Today, oil prices began a new week on new declines, as investors continue to monitor epidemiological situations in Asia,
and they are also looking forward to the OPEC meeting scheduled for this week.

 

The cost of Brent crude futures for June in the London Futures Exchange was $ 65.67 a barrel, $ 0.44 (0.67%) lower than the closing price of the previous session.

As a result of Friday’s trading, these contracts rose by $ 0.71 (1.1%) to record $ 66.11 a barrel.

 

The price of West Texas Intermediate crude futures for June delivery in electronic trading in the New York Mercantile Exchange (NYMEX) was $ 61.76 a barrel,
$ 0.38 (0.61%) lower than the closing level of the previous session.

 

On Friday

On Friday, the value of these contracts rose by $ o.71 (1.2%) to reach $ 62.14 a barrel.

 

As a result of last week’s trading, Brent crude declined by 1%, while West Texas Intermediate crude retreated by – 1.7%.

However, since the start of the year, oil prices have generally risen by more than 27%.

 

 After a strong start for this year, oil prices had recently stalled slightly.

Fears are mainly directed towards India, one of the world’s largest oil consumers.

The epidemiological situation there is very tense and it is likely to have consequences for energy demand.

 

In contrast, the United States and China’s performance- two large oil consumers- are doing better.

In Europe, too, there are increasing signs of economic recovery.

Investors

Investors’ sentiment is under pressure due to the deteriorating epidemiological situation in some Asian countries.

In 4 Japanese provinces such as Tokyo, Osaka, Kyoto, and Hyogo, a state of emergency was declared, which will last until May 11.

At the same time, 349.69 thousand new cases of Covid-19 were recorded in India on April 24.

 

The market is following the development of the situation in India, which has raised some fears about oil demand in the region.

The situation in India, the world’s third-largest oil importer, will be the focus of participants of the OPEC + meeting.

This situation may be a problem for OPEC + countries, which had previously decided to increase oil supplies in May.

This year’s strong beginning for global crude oil prices somewhat declined in mid-March,
as stronger waves of Covid-19 pandemic began hitting some regions around the world.

likely to remain on track

This week, OPEC + countries are likely to remain on track,
as global fundamentals in oil markets have not changed enough since their previous meeting,
requiring changes in the agreement of oil supplies from individual coalition countries.

 

At the same time, analysts believe that meeting will not lead to unexpected decisions, and OPEC + will increase production as planned.

 

The market is also under pressure from prospects of increasing oil exports from Iran.

Last week, Iranian President Hassan Rouhani expressed his optimism that an agreement could be reached between Washington and Tehran
regarding Iran’s nuclear program, noting the progress of negotiations by nearly a 60 to 70% manner.

According to Reuters

According to Reuters, this deal will severely affect morale in markets,
but the result may not be bearish as some believe,
because negotiations have been going on for some time and at the same time Iran has already begun to increase supplies.

 

Meanwhile, data from US oil services company Baker Hughes, published last Friday,
showed a decrease in the number of oil and gas platforms operating
in the United States last week by one unit to reach 438 drilling platforms.

 

Contrast performance for exchanges in Asia

 

Major exchanges in Asia and Pacific had not moved in any particular and steady direction in the middle of the quarterly season,
ahead of the Federal Price Commission meeting scheduled for Wednesday.

 

After a weak start, Tokyo Stock Exchange had closed in a positive area, as support for gains in Wall Street and US indicators
were overshadowed by the Japanese health situation, at the end of last week.

Nikkei index

The Nikkei index rose by 0.36% to record 29126.23 points and the expanded Topix index rose by 0.17% to reach 1918.15 points.

 

Over the entire last week, the Nikkei index fell by more than 2% in facing a possible new emergency state in 4 Japanese provinces, including Tokyo, from Sunday to May 11.

 

This resolution against the epidemic presents more severe measures than they have been since the start of the year in Japan
while remaining moderate compared to restrictions observed in some other places of the world.

 

It mainly is to claim full closure over a period of time for bars offering alcohol,
as well as parks, shops, and shopping centers.

Hong Kong Stock Exchange

In China, the Hang Seng Index in Hong Kong Stock Exchange fell by 0.19%,
while the Composite indexes of Shanghai and Shenzhen were also moving in the red zone.

 

Both Taiwan, Seoul, and Mumbai Exchanges rose by 1.57%, 0.73%,
and 1.4% in a row, while Sydney Exchange was weak and retreated by 0.21%.

 

Today’s expectations are high for DAX but CAC and Footsy are retreating

On Monday, major European exchanges are expected to largely start unchanged,
on eve of a new crowded week in publications of results of companies, economic indicators, and monetary policy announcements.

 

French CAC 40 futures are expected to start in a slight decline of 0.03%,
while the German DAX index may rise by 0.1%.

Expectations indicate the British FTSE index to retreat by 0.08%.

 

Last week, European indexes showed their first drop during 8 weeks,
as concerns were raised regarding a potential increase in taxes in the United States,
which fuel gains operations in markets.

 

Markets are watching epidemiological situations

Bullish and bearish affect oil performance to trade without a clear direction

Bullish and bearish affect oil performance: On Friday, oil prices closed in the green zone,
particularly driven by Libyan supply disruptions, but there were weekly losses in a market
that was concerned about devastating effects of demand because of an increase in the number of Covid-19’s infections, particularly in India.

 

On Friday, the price of Brent crude barrel of North Sea for June delivery ended at $ 66.11 in London,
rising by 1.09% from the closing of the previous day.

 

In New York, the price of West Texas Intermediate crude for the same month rose by 1.16% to record $ 62.14 a barrel,
but during the week, Brent crude fell by 0.91%,
while West Texas Intermediate crude declined by 1.47%.

 

Detailed performance of oil during last week

 

At the first session of last week, specifically on April 19, global oil prices rose in the context of the US weak dollar.

However, momentum had been constrained by concerns about an increase in the number of Covid-19’s cases in India,
the world’s third-largest importer and consumer of oil.

 

Bearish trend continued for 2 consecutive sessions on 20 and 21 April,
because of fears that India may impose restrictions on movement and
closure that would reduce fuel demand in the third-largest oil importer in the world.

 

On 22 April, world oil prices were almost unchanged when the news showed that decline in crude oil production in Libya partially offset expectations that the number of new cases of Covid-19 had increased in India and Japan, and it would reduce the ban on energy demand.

 

At the end of the week, positive signs of increasing oil demand in the West helped in supporting rising prices of oil.

During the last four weeks, the US average gasoline demand was 8.9 million barrels a day,
by an increase of 61.5%, over the same period of last year.

Domestic demand recorded a strong recovery trend as summer tourism season began.

 

At the end of the session on April 23, the price of North Sea Brent crude oil rose by 71 cents (1.1%) to record $ 66.11 a barrel.

The price of US light crude oil (WTI) rose by 71 cents (1.2%) to record $ 62.14 a barrel.

 

Factors of oil ups and downs overlap

The deteriorating health situation in India, disruption of supply from Libya, and a series of US powerful economic data,
all this makes us unexpected a clear and explicit trend as it is just as there are bearish factors, there are also bullish ones.

 

India, the world’s third-largest consumer of black gold (oil), was strongly hit by a new wave of Covid-19.

During the last 24 hours, 330,000 new infections and 2,,000 deaths have been recorded.

 

In response to the government, a quarantine was imposed in New Delhi for a week as well as closing all non-basic stores in Maharashtra,
while Uttar Pradesh, with a population of 200 million, imposed a closure during the weekend,
along with 13 other states across India that decided to impose restrictions, curfew, or blockades.

 

Several countries, including Australia, Britain, Canada, and the United Arab Emirates,
have banned travel to the country and suspended flights from India.

Japan recently announced new closures in Tokyo, Osaka, and 2 other provinces on Friday.

 

After China and the United States, India and Japan are respectively the third and the fourth largest oil importers in the world.

 

If the Indian situation is worrying about global demand,
the picture seems more reassuring than the American and European sides.

 

In EuroZone, Purchasing Managers’Index (PMI) data for April showed a stronger recovery than expected.

More European countries began to ease closures due to Coronavirus.

France announced that schools will open on Monday.

 

US data are added to optimistic expectations, as numbers of Americans applying for unemployment benefits declined
to the lowest level during 13 months last week.

 

On Thursday, during the presentation of its quarterly results,
Texas-based refinery and Petroleum distribution giant Valero announced that gasoline demand reached 93% of pre-epidemic levels,
while diesel demand reached 100%.

Reuters

According to Reuters, the company’s CEO said that international oil activity must increase until the end of this year and beyond.

 

In addition, this week’s supply has been disrupted by the situation in Libya, leading to higher prices.

 

At the start of the week, Libyan National Petroleum Company (NOC) announced a state of force over one of Libya’s major oil ports.

This led to a halt in its exports, owing to failure to shift its balance by the Central Bank,
although recently, there has been political progress in the country.

 

US energy companies reduced numbers of operating platforms for the first time since March.

Energy services company Baker Hughes stated that the recent number of active diggers stands at 438 platforms,
down by only one compared to the previous week.

 

Before this week, drilling workers added diggers for 5 weeks in a row
and they had risen by 80% since dropping to a record of 244 in August 2020.

 

Investors did not seem to react strongly this week to a sudden rise in United States crude inventories by 594,000 barrels,
unlike polls that indicated a decrease of 3 million.

last month

During last month, demand for automobile fuel in the United States averaged nearly 9 million barrels,
60% more than the level of the same period last year.

There are expectations for higher spending and expensive trips for summer.

 

It should also be noted that prices of the 2 major oils have increased by more than 27% compared to the start of the year.

Prospective statement from European Central and oil market is stumbling again

Prospective statement from European Central and oil market is stumbling again:
Today, European markets are waiting for the European Central Bank statement.

Although all expectations indicate that no new decisions are taken regarding interest rates and critical facilities,
the event is internationally interested in traders.

 

Evest is following up daily all market developments and relays them to you in detail.

 

Oil retreats after increasing US inventories according to official data

Today, benchmark oil prices retreated amid unexpected increases in US oil inventories
and concerns about fuel demand due to the rise in Covid-19 cases in Asia.

 

In the London Futures Exchange, the June futures cost of Brent oil was $ 65.13 a barrel,
$ 0.19 (0.29%) below the closing price of the previous session.

As a result of Wednesday’s trading, these contracts declined by $ 1.25 (1.9%)- to record $ 65.32 a barrel.

New York

In New York Mercantile Exchange (NYMEX), West Texas Intermediate crude futures price for June delivery was $ 61.13 a barrel,
$ 0.22 (0.36%) lower than the level at the end of the previous session.

On Wednesday, the value of these contracts fell by $ 1.32 (2.1%) – to reach $ 61.35 a barrel.

 

On Wednesday, both contracts closed at their lowest level since April 13.

MarketWatch

According to MarketWatch, there are many driving forces in the energy market at present time,
including growing concerns about the spread of Covid-19 all over the world,
undermining recovery in consumer demand.

 

US commercial oil reserves rose by 594,000 barrels last week,
according to a weekly report by the County’s Department of Energy.

This is the first increase in US oil inventories in 4 weeks.

 

Gasoline inventories rose by 85,000 barrels.

Commercial inventories of trailers declined by 1.07 million barrels.

Bloomberg predicted

Experts interviewed by Bloomberg predicted a reduction in oil inventories by 3.55 million barrels,
an increase in gasoline inventories by 1 million barrels, and a reduction in distillation stocks by 1.7 million barrels.

 

Analysts polled by Standard and Poor’s Global Platts expected an average declined by 4.4 million barrels in oil inventories last week.

On the other hand, investors are concerned that the spread of Coronavirus is intensively returning in many Asian countries,
calling into question about possibilities of a recovery in global demand.

Fears of an increase in cases of new Coronavirus

Fears of an increase in cases of new Coronavirus (Covid-19) infections in countries such as Japan,
the world’s third-largest oil importer and India,
the world’s third-largest oil consumer will have a negative impact on global economic recovery.

 

Indian authorities announced new quarantine procedures in a number of cities, including New Delhi.

At the same time, in some Japanese provinces, an emergency system may be introduced due to an increase in the number of infections
– although the Olympics will start in the country within only 3 months.

Prime Minister Suja Yoshihide

Prime Minister Suja Yoshihide reported that they are planning to declare a state of emergency
against increasing cases in Tokyo, Osaka, and Hyogo regions.

While experts warn that the Indian health system is on the verge of collapse,
they point to the highest levels of operation rates in hospitals,
as 314,835 new cases were monitored during the last 24 hours, and the total of cases was 15.930,000 million.

 

Market participants are also focusing on prospects of adopting the NOPEC Act (law banning the production and exporting oil) in the United States,
under which the US Department of Justice will be able to bring monopoly lawsuits against OPEC countries, as analysts say.

Petroleum Exporting Countries

Markets are focusing on the meeting at which the Organisation of Petroleum Exporting Countries (OPEC) and OPEC Group,
which consists of some non-OPEC producing countries, will meet on April 28,
to discuss the size of cuts they will implement in May.

 

Next week, the Organisation of Petroleum Exporting Countries (OPEC) and its allies will meet,
but significant changes are unlikely to be conducted on current production cuts,
according to Deputy Prime Minister Alexander Novak.

 

This group decided to gradually increase its daily production from oil for May, June, and July at its meeting which was held on April 1.

 

Good recovery for Asian indicators

Today, Asian stocks continued to rebound on world markets, after a sharp sell-off earlier this week.

 

Nikkei index, which includes 225 shares, rose by 2.1% to record 29100 points.

The Broader Topix index rose by 1.5% to reach 1917 points.

 

Shanghai Stock Exchange declined by 0.1%.

In Shenzhen, the index of the most important companies lost 01%.

 

The collective rise in Wall Street

After the recent price slide, some investors are taking the opportunity to enter the US stock market again.

 

On Wednesday, the Dow Jones index closed up 0.9% to record 34,137 points.

Heavy-tech Nasdaq 100 indicator rose by 1.2% to record 13.950.

The Broader Standard and Poor’s 500 indexes increased by 0.9% to record 4173 points.

 

European markets are waiting for European Central Statement

European exchanges are expected to start today’s morning,
along lines of Wall Street and Asian markets,
for a session that will be busy with a new round of quarterly results and a European Central Bank (ECB) meeting.

 

Press release of the European Central Bank which is expected to be issued
during the afternoon is expected not to announce any major changes,
as the Central Bank is likely to intend to take advantage of this event to justify maintaining its highly facilitated monetary policy.

 

During its press conference, scheduled for today afternoon, President of Foundation,
Christine Lagarde must repeat again her desire to maintain favorable financial conditions within the euro area.

436 thousand barrels, a drop in US oil inventories for this week

436 thousand barrels a drop in US oil inventories for this week:
The American Petroleum Institute (API) announced yesterday,
Tuesday, April 20, 2021, that US crude oil inventories reached 436,000 barrels for the week ending April 16th.

After analysts had expected a decline of 2.860 million barrels for this week.

In the previous week, the American Petroleum Institute announced a decline in oil inventories of 3.608 million barrels,
and analysts had expected a decline of 2.889 million barrels.

Sales inventories were also reported to have decreased by 1.617 million barrels
for the week ending April 16 – after an increase of 5.565 million barrels in the previous week.

Analysts had expected an increase of 650,000 barrels this week.

Changes in oil prices this week

Before the American Petroleum Institute data was released,
oil prices decreased due to declining demand rates,
as a result of the high number of people infected with the Coronavirus in India,
which ranks as one of the largest oil importers in the world.

Prior to midday on Tuesday, WTI was trading for $ 62.29,
down 1.72% on a day but higher than this time last week by more than $ 2 USD per barrel.

Meanwhile, the benchmark Brent crude oil price, trading at $ 66.33 a barrel, is down 1.07% for the week.

At the end of the day, WTI was trading for $ 62.29, while Brent crude was trading for $ 66.33 a barrel.

Weekly energy production rates

Coinciding with the rise in crude oil inventories this week,
in the last week ending April 9th, daily crude production rose to 11.0 million barrels,
according to the Energy Information Administration data.

However, the increase is still limited from October of 2020 until this week.

Cushing’s stock indexes decreased by 1.286 million barrels.

India’s demand for oil has declined due to the Coronavirus

The increasing number of people infected with the Coronavirus has caused the closure of some oil fields,
and India’s oil production decreased by 5% from April of last year until March of this year,
and refining operations decreased due to weak demand for oil.

The average price of crude oil that India bought in April and May was $ 19 a barrel,
while India’s purchase price of oil in January 2020 was $ 60 a barrel.

Thanks to last year’s price drop that hadn’t happened in years, India saved $ 685.11 million.

The Gulf States Are Planning New Oil and Gas Projects at a Value of 10 Billion Dollars

The Arab Gulf states announced the opening of new projects in the oil and gas sector during the first quarter of 2021,
at a value of $ 10 billion, out of $ 32.3 billion allocated to projects in all sectors.

The Gulf Cooperation Council Countries, represented by Bahrain, Kuwait, Oman, Qatar,
and the United Arab Emirates added the oil industry as the second largest project value
in the first quarter after the projects sector of the BNC Network Special Projects Company,
cited by TradeArabia.

The announced projects in utilities were worth a total of US$14.5 billion,
according to BNC Network’s estimates.

At the global level, Saudi Arabia accounted for 54% of the Q1 announcements with projects worth $19 billion,
followed by Qatar with 21% of the value of Q1 announcements.

GCC

In the oil and gas sector, it was Qatar that contributed the most to the $10 billion worth of projects in the GCC in the first quarter,
with the announcement of the expansion of Qatar’s liquefied natural gas (LNG) capacity.

Qatar’s plan is to replace energy with LNG since February 2021 at a rate of 77 million tons per year,
until it reaches 110 million tons per year in 2025. According to the plan,
production is expected to start in the third quarter of 2025, at a cost.

$ 28.75 billion as one of the largest recent Qatari investments.

project to expand

Qatar is also planning a project to expand the “North Field” it shares with Iran,
the largest natural gas field in the world.

It is also planning another production phase of LNG, through an expansion project in the North Field (NFS),
the largest natural gas field in the world, which it shares with Iran.

This project is set to increase Qatar’s capacity to produce LNG from 110 mmtpa to 126 mmtpa annually,
and with an expected production start date in 2027. 

Nigeria Is Preparing To Start More Than 90 Oil and Gas Projects

According to the latest GlobalData report, up to 100 projects in Nigeria’s oil and gas sector
are set to begin implementation by 2025, which is 23% of all petrochemical projects starting in Africa,
over the next five years.

 Until 2025, petrochemical projects will retain the largest share of startup projects in Nigeria.

It is expected to implement 28 projects, then 25 oil and gas projects, 24 refining projects,
and 23 medium projects, according to GlobalData.

It is planned that the projects will be carried out with close monitoring,
in order to reduce its dependence on fuel imports, to renovate old refineries and build new refineries.

The implementation of these projects will make Nigeria an exporter of oil and distillates for neighboring countries.

The largest producer and exporter of crude oil in Africa is expected to terminate the crude oil-to-fuel swap deals beginning in 2023.

Nigerian National Petroleum

The Nigerian National Petroleum Corporation (NNPC) said in October of last year.

Nigerian refineries project, which needs to be revamped, will be completely renewed by 2023.

Nigeria, Africa’s largest crude oil producer and exporter, is expected to end its crude-for-fuel swap deals by 2023 when its refining capacity is set to increase with state refineries revamped and a new refinery built, Mele Kyari,
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), said in October last year.

Nigerian refineries, which are in need of refurbishment,
will be fully revamped and running by 2023.

Back in October, Kyari also said that “The outlook for Nigeria’s downstream sector looks bright with attractive market conditions,
large market, and significant crude distillation capacity additions from various refinery projects,
and improvements of the distribution network & the use of natural gas.” 

A Decline in the Rate of Libyan Oil Production

The National Oil Corporation in Libya announced that the Harika port crisis due to lack of funds
needed to repair infrastructure, to be reduced Libyan oil production to less than one million barrels per day,
for the first time in several months,
as it was forced to stop production in several fields.

“While the National Oil Corporation understands the motives for the temporary production reduction that the company
was forced to do and give an excuse for the Government of National Unity due to the delay in approving the 2021 budget,
it returns legal responsibility to the Central Bank of Libya,
which refused to liquidate the financial arrangements that were approved in accordance
with the decision of the former Government of National Accord.”

The National Oil Corporation blamed the central bank
for being the indirect cause of problems including the collapse of the reservoir and transmission line,
contamination of reservoirs, and suspension of wells,
all because it did not provide the necessary maintenance papers to the state oil company.

Covid-19 negatively affects oil markets and stock markets in Asia

Covid-19 negatively affects oil markets and stock markets in Asia: Covid-19 is still the basic driver of markets, as current development in many Asian countries currently refers to a close setback for some markets.

 

Evest is daily following up all developments in the economic scene and transmits them directly to you.

 

India causes oil to retreat

Today, oil prices declined amid renewed increases in Covid-19’s cases in many Asian countries,
calling into question prospects for a recovery in global demand.

 

June futures cost for Brent oil on London Futures Exchange was $ 66.09 a barrel,
$ 0.48 (0.72%) below the closing price of the previous session.

As a result of trading on Tuesday, these contracts decreased by $ 0.48 (0.7%) to record $ 66.57 a barrel.

West Texas

West Texas Intermediate crude futures price for June’s delivery in electronic trading on New York Mercantile Exchange (NIMEX) was $ 62.15 a barrel, $ 0.52 (0.83%) below the level at the previous session.

On Tuesday, the value of these contracts fell by $ 0.76 (1.2%) to record $ 62.67 a barrel.

India 

Indian authorities have announced new quarantine procedures in a number of cities,
including New Delhi. Meanwhile, in some Japanese provinces, an emergency system may be introduced due to increased numbers of infections – although the Olympics will start in the country in just 3 months.

 

In light of low prices, concern that strict measures resulting from this increase in the number of new species of Corona (Covid-19) cases in India, the world’s third-largest consumer of oil, will negatively affect demand for oil.

the India Ministry of Health

According to a statement issued by the India Ministry of Health, with 295,000, 41 new cases during the last 24 hours, the total number of infections reached 15 million and 616,130 cases, while 2023 people have died during the last 24 hours due to Covid-19 in the country.

The total number of deaths has risen to 182,553 thousand people.

 

In India, the second most affected country of epidemic after the United States,
cases had rapidly risen since February, causing a massive wave of infections.

Quarantine measures have been implemented in most countries,
as it became the largest number of cases in the world on a daily basis since April 2.

the first countries to face the new wave

In India, which is one of the first countries to face the new wave of the epidemic around the world,
it is estimated that increasingly mutant and infectious Covid-19 strains are effective in recent increases in cases.

 

As for India, which is facing a crisis because of a shortage of oxygen tanks and hospital beds,
experts warn that the health system is at a “breaking point”, noting that hospital occupancy rates are at their highest level after increasing cases in the country.

 

According to experts, recovery in global demand for oil will not be stable,
and the world will witness these restrictions from time to time.

In general, demand for oil will continue to increase in large areas.

 

On the other hand, the prediction of increased United States commercial crude oil inventories,
the world’s largest consumer of oil has also been effective in reducing prices.

American Petroleum Institute

According to a report issued on Tuesday by American Petroleum Institute,
US oil inventories increased by 436,000 barrels last week.

Market expectations were that oil inventories would decrease by 2,860,000 barrels.

If data is officially confirmed, an increase in American inventories will be the first during 4 weeks.

 

The United States Department of Energy will issue weekly data of energy inventories later today.

Experts predict an average reduction of 4.4 million barrels in oil inventories for the week ending on April 16.

 

Today’s performance of gold

The price of gold rose by 0.42% to record $1784.70 an ounce,
while June gold futures rose by 0.37% to record $ 1785.00 in commodity markets in New York.

 

Japanese Stock Exchange is suffering

Today, the Tokyo Stock Exchange has suffered heavy losses for the second session in a row,
as investors fear the Japanese economy will be affected by enhanced actions against Covid-19 which are planned by many departments in the country.

Nikkei index

The main Nikkei index fell by 203% to record 28.508.55 points after it had already dropped by 2% on Tuesday.

This is its first closing by less than 29.000 points since March 25.

The Border Topix index lost 1.98% to reach 1888.18 points.

 

On Tuesday, the Ministry of Osaka asked the Central Government to declare a state of emergency in its territory to try to stop the escalation of Covid-19, while other departments, including Tokyo, are considering the same procedure.

 

With a promise to be tougher than the previous regime in effect from January to March,
this new emergency may be accompanied by a request to close bars, restaurants, supermarkets,
recreational parks, and cinemas, which will be further affecting the country’s economy.

China

In Chinese markets, the mood was bleak or at least cautious, as, in Hong Kong, the Hang Seng Index fell by
1.6%, at around 0.5:55 GMT, while changing Shanghai and Shenzhen indexes, was limited.

 

Taiwan Stock Exchange fell by 0.7%, while Seoul retreated by 1.52%, but Sydney declined by 0.29%.

 

A collective decline for Wall Street indicators

In New York, the Dow Jones Industrial index fell by 0.75%, while the Standard and Poor’s index fell by 0.68%,
but the Nasdaq Composite index decreased by 0.92%.

Futures indicators are expected to slightly fall on today’s opening.

Oil sharply jumps in memory of the day when prices decline below zero.. Nikkei is falling, scoring the worst performance in a month

Oil sharply jumps in memory of the day when prices decline below zero: Today, oil is trying to hold on to its gains,
having suffered many losses either in last year or during the current month.

 

Although today is the memory of oil prices declining below zero, and being negatively priced,
it is regaining strength today and rising to record the best performance in more than a month and a half.

 

On a day of a setback… Oil records its highest levels in a month and a half

Oil prices continued to rise and they reached their highest level since early March on Tuesday morning.

Prices were supported by the weak dollar, as well as expectations of a decline in US oil reserves last week.

June futures price

The June futures price for Brent oil on the London Futures Exchange was $ 67.76 a barrel,
it is $ 0.71 (1.06%) higher than the closing price of the previous session.

The price of US West Texas Intermediate crude oil futures for May in electronic trading
on the New York Mercantile Exchange was $ 64.00 a barrel,
$ 0.62 (098%) higher than the level at the close of the previous session.

 

The dollar fell to its lowest level in 6 weeks against other major currencies yesterday,
following a drop in returns on United States Treasury bonds last week. Today,
United States currency has remained near the minimum at 91055.

Reuters poll

According to a previous Reuters poll, crude oil inventories and distilleries in the United States declined last week.

This also supported prices.

At the same time, gasoline inventories are expected to increase.

 

Investors are analyzing the situation in fuel markets.

In the United States, refinery production reached its top in more than a year as economic activity recovered,
but demand for oil is sharply weak in India, which is struggling against another wave of Covid-19 pandemic.

National Petroleum Corporation

On other hand, yesterday, the Libyan National Petroleum Corporation (LNPC) declared that there was major force over exports from the port of Al-Hariqa and it also stated that it might extend the procedure to other facilities because of a budget dispute with the country’s central bank.

 

Failure of negotiations may lead to reduce Libya’s oil production by 280,000 barrels a day
and reducing daily production at less than 1 million barrels for the first time since October of last year

Saudi Arabia’s exports

Saudi Arabia’s exports of crude oil fell to their lowest level during 8 months in February,
according to local media reports, the world’s largest oil exporter is voluntarily committed to limit production to support global prices.

 

However, the growing number of Covid-19 cases, the world’s third-largest oil importer,
and the consumer have weakened investors’ optimism about sustained recovery in global fuel demand.

The energy market

The energy market is closely watching India as the current jump forces oil refineries to halt production and raises concerns about a potential new strain of Coronavirus.

 

Oil prices also rose against the backdrop of the upcoming OPEC + meeting, which may take place on April 28.

As previously known, the possibility of holding only a meeting of the Oversight Committee,
without a general meeting or Organisation is being discussed.

Three of Bloomberg delegates stated that they did not expect any changes to the planned increase in oil production.

last year

On such a day of last year, the global market faced an unprecedented crisis.

On April 20, 2020, during the evening trading session, the price of West Texas Intermediate crude futures for May delivery fell below zero for the first time in history and reached $ – 40 a barrel.

 

In the United States, oil prices negatively declined after blockade in many countries around the world – during the war against the Covid-19 epidemic – which severely reduced fuel demand, as oil producers from Saudi Arabia and Russia plunged markets with oil as a part of the price war.

 

Development of Covid-19 vaccines and restoration of unity within OPEC + alliance,
followed by significant reductions in crude oil supplies of this group, helped oil prices to be gradually recovered.

May

In May, with an entry of the new OPEC + agreement into effect, and the recovery of demand from China to almost pre-crisis level,
the oil market situation began to change in a positive direction.

 

Since the beginning of 2021, the price of crude oil in the United States has risen by more than 30%,
in reaction to forecasts for higher fuel consumption after the opening of economies and depletion of raw materials inventories in the United States of America.

 

Now, analysts do not see the danger of repeating last year’s situation.

Total closure is no longer threatening the world, and it is possible to completely break out of pandemic’s pressure over the coming year, which means that there is no prospect of a return to price imbalances again, at least in the perspective of next year.

 

The Nikkei index is retreating and records the worst performance in a month

In Tokyo Stock Exchange, the Nikkei index fell by about 2% on Tuesday.

This is its worst decline in nearly a month, affected by Wall Street losses on the previous day
and continued deterioration of the health situation in Japan.

Nikkei index

The Nikkei index ended the day with a drop of 584.99 points to reach 29100.38 points, while the broader Topix index which compiles higher capitalization securities, those dropped in the first section, fell by 30.31 points or 1.55% to reach 1926.25 points.

 

Thus, Tokyo reflected investors’ concerns about a request made to the Japanese government by Osaka Prefecture,
the country’s third-largest population, to declare once again a health emergency in that region because of increasing Coronavirus infections.

 

This means imposing new restrictions on private-sector economic activity and will be added to restrictions of 9 other provinces, including Tokyo, such as cutting off-hours for bars and restaurants in order to reduce infections.

The Nikkei index was also affected by the appreciation of local currency against the dollar,
as it was traded in a high zone at 107 yen, the highest level since the start of March.

major Japanese exporters

This development is hurting major Japanese exporters who have recorded the greatest loss of session along with air transport,
real estate, and machinery sectors.

 

SoftBank shares lost 1.83%, while Japanese automaker Toyota Motors dropped by 1.22%.

China

In China, stock markets in Hong Kong, Shanghai,
and Shenzhen was close to stability.