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Gold and oil declined and an upcoming meeting today on the US-Iranian talks

Gold and oil declined and an upcoming meeting today on the US-Iranian talks

Gold and oil declined and an upcoming meeting today on the US-Iranian talks: Oil resumed its decline today, having managed to rise to a 7-year high, while traders still concerned about the Ukrainian situation and Russian threats. 

Evest follows market developments in the following report.

Topics:

Oil declined in anticipation of US Iran talks

Traders focus on talks in Ukraine

Russia and France negotiations

The Dow Jones index rose alone by one point in a volatile session

Mixed dynamics in Asia

The gold declined again and the dollar surged

Oil declined in anticipation of US Iran talks

The oil price fell slightly on Tuesday after hitting a seven-year high following the results of the previous session.

Market attention turned to talks between Washington and Tehran on Iran’s nuclear program, which will resume on February 8.

Investors’ optimism that the parties will reach an agreement allowing Iran to formally resume oil exports is increasing, Bloomberg reported.

Earlier, the Wall Street Journal reported that President Joe Biden’s administration had lifted a number of sanctions against civilian nuclear projects in Iran,
in an effort to bring Tehran back into compliance with the terms of the Joint Comprehensive Plan of Action on Iran, a program approved in 2015.

The April futures price for Brent oil on London Futures Exchange reached $92.53 per barrel,
$0.16 (0.17%) lower than the closing price of the previous session.

As a result of Monday’s trading, these futures fell by $0.58 (0.6%) to $92.69 per barrel.

The price of oil futures for March in electronic trading on the New York Mercantile Exchange (NYMEX) at this time was $91.24 per barrel,
$0.08 (0.09%) lower than the final value of Monday’s session.

The day before, these futures fell by $0.99 (1.1%) – to $91.32 per barrel.

Traders’ concerns about market supply shortages have declined due to some progress in negotiations between the United States and Iran.

In the meantime, demand expectations remain mixed.

For its part, the state-owned Saudi Aramco said that Saudi Arabia planned to raise the price of all grades of oil to buyers from all regions in March.

Traders focus on talks in Ukraine

The situation throughout Ukraine remains a major concern for traders.

The day before, Biden said after talks with German Chancellor Olaf Schultz that the Nord Stream 2 gas pipeline would not work if Russia invaded Ukraine.

At a press conference in Washington following talks with the United States,
European diplomatic chief Josep Burrell said that the European Union was proceeding from the fact that it was possible,
to find a diplomatic solution to the situation that had developed in the Russian border area with Ukraine. 

“If Russia continues the course of aggression, the actions of the European Union and the United States will be significant,
and this is particularly true of sanctions,” he said.

 

Russia and France negotiations

Russian President Vladimir Putin said at a press conference following negotiations with the French President ,
that the assertion that Russia was acting aggressively ran counter to common sense,
that it was the NATO infrastructure that came close to the borders of the Russian Federation, not the other way around.

Vladimir Putin also said that France and Russia were in solidarity on the need to maintain and fully restore the Joint Comprehensive Plan of Action on Iran’s nuclear program.

Putin drew the attention of French Emmanuel Macron to Kyiv‘s unwillingness to implement the “Minsk agreements”,
the only solution to the situation in south-eastern Ukraine.

He  believes that some of Macron’s ideas could form the basis for joint steps to calm the situation on Ukraine.

Macron promised on Tuesday to discuss Russian proposals on security assurances with Kyiv.

According to Macron, the coming days will be decisive in terms of de-escalation of the situation in Ukraine,
which will depend on negotiations and consultations with the United States, NATO and Europeans,
as well as his meeting with Ukrainian President Volodymyr Zelensky.

According to media agencies, British Prime Minister Johnson is considering deploying British Royal Air Force fighters and RN warships to bring back Ukraine.

For his part, Russian President Putin warned against drawing the European States into military conflict if Ukraine joined NATO.

The Dow Jones index rose alone by one point in a volatile session

US stock indices, the Standard and Poor’s and the Nasdaq, fell by 0.4-0.6%, respectively, and the Dow Jones index rose by only one point after the volatile session on Monday.

This week, markets will focus on US consumer price dynamics data for January, which will be published on Thursday.

Analysts surveyed by Trading Economics predicted that US consumer prices rose by 7.3% on an annual basis last month and 0.5% versus December.

Accelerating inflation and a vibrant labor market recovery can become strong arguments for the Fed in favor of tightening monetary policy.

The corporate reporting season, which is well under way, turned out to be a success overall.

About 75% of companies have reported the S&P index already over the past quarter, and their earnings exceeded market expectations by an average of 8%, according to Credit Suisse.

 

Mixed dynamics in Asia

In Asia, index dynamics were mixed on Tuesday.

Australia’s ASX index rose by 1.1%, Japan’s Nikkei index – by 0.3%,
China’s Shanghai Composite Index fell by 0.9%, South Korea’s KOSPI rose by 0.8%, and Hong Kong’s Hang Seng Index rose. 

The gold declined again and the dollar surged

Both gold and silver moved lower at the beginning of the European session.

In the rest of the commodity complex, copper fell by about 1%.

In foreign exchange markets, the dollar index rose by 0.35% overnight.

The dollar pair against the Japanese yen was the largest driver, jumping by 0.38%.

In cryptocurrency, bitcoin started to recover, also rising by 2.25%.

Oil is above $90 and positive trading in Asia

Oil is above $90 and positive trading in Asia despite the closure of China’s exchanges

Oil is above $90 and positive trading in Asia despite the closure of China’s exchanges: Oil rose to a 7-year high above $90 a barrel,
giving the commodity’s traders considerable optimism even amid geopolitical pressures that could affect it.

Evest follows market developments in the following report.

Topics:

Oil break above $90 per barrel near 7 year highs

US-Russia discussions about the attack on Ukraine

US indices end the week higher after a 3-week decline

Positive trading in Asia and the Chinese exchanges are closed

Oil break above $90 per barrel near 7 year highs

Oil prices rose on Monday morning near 7-year highs.

The price of March Brent oil futures on the London Stock Exchange Futures is $91.02 per barrel on Monday,
$0.99 (1.1%) higher than the closing price of the previous session. 

As a result of Friday’s trading, these futures rose by $0.69 to $90.03 per barrel,
as the price rose to $91.7 per barrel during the auction for the first time since October 2014.

Brent crude rose to $90 per barrel for the first time since October 2014

Brent crude futures for March expire on Monday.

The cost of the more active traded April futures rose by $0.89 (1.01%) to $89.41 per barrel.

The price of West Texas Intermediate crude futures for March in electronic trading on the New York Mercantile Exchange (NYMEX) was $87.78 per barrel by this time,
$0.96 (1.11%) higher than the final value of the previous session.

The day before, these futures rose by $0.21 to $86.82 per barrel.

The prices of both types of oil rose for the sixth week in a row.

Since the beginning of January, its value has risen by about 16%,
while the growth rate may be the highest since February 2021.

According to analysts, the start of the week was strong due to concerns ,
over oil supply issues as well as ongoing geopolitical risks. 

In the meantime, market attention is shifting to the next OPEC + ministerial meeting.

Market participants are anticipating the meeting to be held on February 2,
to decide to continue the plan to increase oil production by 400 thousand barrels per day monthly in March.

Oil prices are likely to continue rising this week,
as Brent crude is believed to remain above $90 a barrel,
given the expectation that OPEC+ will maintain the current policy of gradually increasing production.

US Russia discussions about the attack on Ukraine

Pentagon chief, Lloyd Austin, said on Friday that the US administration,
is not yet clear whether Russia intends to attack Ukraine,

but it believes that Moscow is currently militarily equipped to carry out such an attack. 

Austin has also indicated that the United States does not rule out Russia taking “extremely provocative steps,
such as recognizing the independence of the territories separated from Ukraine.”

In the meantime, “conflict is not inevitable,” according to the Pentagon chief.

For his part, Secretary of the Security Council of the Russian Federation, Nikolai Patrushev

said that Russia has no desire to fight with Ukraine, and Moscow does not pose threats.

“The Ukrainians themselves, including the officials, say they are not being threatened.

But US officials say they are not threatened, ready to fight,
and provide enough weapons to the Ukrainians, parties or not,” Patrushev said.

According to Western media, for his part,
US President Joe Biden said that he intends to ,
send additional troops to the NATO countries’ territories in Eastern Europe soon. 

Biden has made it clear that he will do so “in the near future,” according to them.

The Pentagon announced earlier last week that it had put 8,500 troops,
on high alert in anticipation of the need to move them to Europe due to the tense situation over Ukraine.

Bloomberg reported last Friday that the UN Security Council meeting ,
on the situation in Ukraine is scheduled for Monday, even with Russia’s reluctance to do so. 

The United States believes that the meeting,
is an opportunity for Russia to explain its actions on the border with Ukraine ,
and to clarify whether it is planning a diplomatic solution to the problem,
according to the agency.

US indices end the week higher after a 3-week decline

In the US, indices rose by 1.7-3.1% on Friday,
strong growth in the last hours of trading after strong corporate reports,
thanks to which indices were able to reach “positive” at the end of the week.

During the week, the Dow Jones index rose by 0.8% and the Standard & Poor’s – by 1.3%,
Previously, the Dow Jones and Standard & Poor’s indices had fallen for three weeks in a row. 

The Nasdaq ended the week just 0.01% higher, but it was enough to break a four-week declines streak.

Investors also evaluated the latest statistical data released by the United States.

US Department of Commerce data showed that ,
the US population’s income in December rose by 0.3% compared to the previous month.

Meanwhile, Americans’ expenditures fell by 0.6%.

Which previously rose on the basis of six months in a row.

Analysts predicted an increase in the first indicator by an average of 0.5%,
while the second indicator dynamics matched expectations, according to Trading Economics.

The record consumer price index rose by 0.4% last month compared to November and 5.8% compared to December 2020,
and the annual growth rate was the highest in 40 years.

The core PCE index, which does not include food and energy prices,
rose by 0.5% on a monthly basis and 4.9% on an annual basis in December, the highest level since 1983.

Medium-term (next year) inflation predictions rose in January to 4.9% from 4.8% for the long-term (5 years) ,
up to 3.1% from 2.9%.

Positive trading in Asia and the Chinese exchanges are closed

Positive dynamics of stock indices also rolling Asia.

Australia’s ASX Australia rose by 0.2%, Japan’s Nikkei – by 1.4%,
Hong Kong’s Hang Seng – by 1.6%,
and mainland China and South Korea are closed due to celebrate the New Year according to the lunar calendar

 

Oil prices stabilize as stocks market declined and inventories slightly lowered

Oil prices stabilize as stocks market declined and inventories slightly lowered

Oil prices stabilize as stocks market declined and inventories slightly lowered: This week, the American Petroleum Institute (API) proclaimed a decline of 872.000 barrels in U.S. crude stockpiles,
while analysts forecasted a decline of 400.000 barrels.

Evest follows oil market developments in the following report.

Topics:

American Petroleum Institute report

Oil prices for the week

Oil production weekly rates

Market’s drivers latest decisions

The oil sector latest updates

 

American Petroleum Institute report

Thus U.S. oil stockpiles lowered by 75 million barrels since the beginning of 2021 and lowered by 17 mill barrels since the beginning of 2022.

Last week, the API stated a rise of 1.404 million barrels in crude stockpiles; however analysts expected a drop of 1.367 million barrels.

In the last week the API declared the third rise in a row in gasoline stockpiles by 3.463 million barrels.

This week, the API stated a rise of 2.4 million barrels for the week to Jan 21, besides the 3.463 million barrels rise of the previous week.

This week, distillate stockpiles dropped by 2.2 million barrels, following the previous week’s decline of 1.179 million barrels.

Cushing stockpiles declined by a million barrels this week.

Oil prices for the week

After the stock market fell on Monday, oil price hikes stopped temporarily, however prices recovered again by Tuesday morning.

On Tuesday oil prices rose before data was published to offset Monday’s losses.

During this period prices weren’t stable due to geopolitical concerns and strong demand, leading prices to surge while unstable supplies and dollar prices made prices fall.

Yesterday West Texas Intermediate (WTI) rose 2.36% to $85.28 a barrel, $2 per barrel down throughout the week.

Brent crude rose 2.16% to $88.13 a barrel, $0.60 down throughout the week.

 

 

Oil production weekly rates

U.S. oil production continues to rise.

For the week to Jan 14 , the last week the EIA published data about production, U.S. Production of crude stood steadily by 11.7 million barrels per day (bpd),
lowered by 1.4 million barrels than the period prior to pandemic.

By midday West Texas Intermediate was for $85.08 and Brent was for $87.78.

Market’s drivers latest decisions

Abu Dhabi national oil company (ADNOC) launched a new subsidiary (ADNOC Murban), a unit to issue debts of extending projects of billions of dollars.

ADNOC expects for the new subsidiary to get the highest third rating from the main three private rating agencies.

The giant Italian oil company ENI (NYSE:E) intends to offer its joint project, var Energi, in Oslo stock exchange.

The project is a joint project with HitecVision, a private stocks company, it concentrates on Norway. Eni intends to use the subscription potential 10-13 billion euros to fund its initiative of green energy.

Reports indicated that Shell (NYSE:RDS) and Graff-1 have made a great oil and gas discovery in Namibia, it is the first ever discovery in the African country.

The discovery raises the possibilities of the nearby Total Energies (NYSE:TTE) Venus-1 well.

 

The oil sector latest updates

 

Releasing hostages is a part of Iran’s nuclear agreement

Robert Malley, U.S. special representative to Iran said that Iran’s release of prisoners is a prior condition to the revival of the nuclear deal and “Joint comprehensive plan of action”,
to add extra complications to really tense negotiations.

Russian-Ukrainian escalation brings sanctions back to negotiations’ table

As the diplomatic American  Russian talks have stumbled and the rising tensions between Russia and Ukraine,
the European Union has discussed the potential sanctions on Russia in case it attacks Ukraine.

The Houthi attack UAE again

UAE military defense forces blocked two drones attack, assumed to be struck by the Houthis Yemen as splinters shed all over Abu Dhabi,
however no human injuries were registered just as what happened a week ago during the first attack.

A shipping giant searches for electrical charging for inactive carriers

MAERSK (CPH:MAERSK), a giant Danish shipping company is planning to install hundreds of offshore charging stations all over the world to charge ship’s
electric buoys which are floating inactively out of harbor waiting for discharge, to reduce the firing of more fossil fuel.

Many of USGC’s refineries are for sale

According to media reports, LyondellBasell is facing problems in selling Houston’s refinery of 264.000 barrels per day amongst many other assets to be sold in Louisiana and Alaska,
although (NYSE:MPC) and Chevron (NYSE:CVX) were engaged before in the marathon of buying.

Containers prices are surging again

Containers’ shipping prices have begun to surge up again although the Lunar new year’s vacations in China have begun, to afford an ease to dealings.

Covid-19 raised infection expectations and following delays have pushed FBX index to  about $10.000, the highest in two months.

Angola is delaying partial privatization of Sonangol

Despite the readiness to be backed to global markets in 2022, Angola’s government delayed the 30% privatization of Sonangol, its national oil company,
reasoning that its public budget needs from 12 to 15 months to reflect the genuine assets.

Peru threatens to penalize Repsol for oil leak

Mirtha vásquez, Peru’s prime minister said that the  Latin America’s state is studying the possibility of penalizing Pamela refinery,
controlled by the Spanish oil company Repsol (BME:REP), after a massive oil leak due to Tonga eruption to be described as “ecological disaster”.

U.S. crude summit reveals a division in demand forecasts

U.S. oil executive directors presented contrasted forecasts about the U.S. crude production growth in the current crude summit.

ConocoPhillips (NYSE:COP) expected for the production to exceed 13 million barrels per day, exceeding 2019’s levels, while Occidental forecasted more standard hikes.

Germany warns to describe nuclear energy as “green”

Germany’s government objected to the European Union’s project that describes nuclear energy as “green”, noting it is expensive and risky.

However Germany didn’t threaten to raise any lawful issues as Austria did.

Shell officially deletes the Netherlands property

Shell (NYSE:RDS.A), the biggest European energy company has officially changed and deleted “Royal Dutch” during the change of its headquarter from the Netherlands to the UK,
deleting the structure of its double share.

 

 

 

Oil prices hit high following Houthi attack in UAE and raised concerns of Russian invasion of Ukraine

Oil prices hit high following Houthi attack in UAE and raised concerns of Russian invasion of Ukraine

Oil prices hit high following Houthi attack in UAE and raised concerns of Russian invasion of Ukraine: According to Reuters, on Tuesday, oil prices hit its highest since 2014 ,
amid investors’ worries of the international political tensions including biggest producers such as UAE and Russia,
which would lead to bad expectations of the actual limited supplies.

Evest follows market developments in the following report.

Topics

Oil prices for the week

Market’s drivers latest decisions

The sector situation for the week 

The oil sector updates 

 

 

Oil prices for the week

The Houthi drone attack in UAE led to an escalation in one of the world’s biggest producers, adding a big geo-political rise to prices,
in a market that is actually at stake due to the potential Russian invasion of Ukraine.

Oil prices  rose in the first two sessions this week, as Omicron has failed in having big effects on the global demand of crude,

besides the latest reports noting the possibility of not having an impact on lungs,
compared to the previous variants.

Brent crude futures rose $1.03 or 1.2% to $87.51 a barrel.

While West Texas Intermediate (WTI) crude closed on a $1.61 rise or 1.9% to $85.43 a barrel, according to Reuters.

Market drivers latest decisions

British Petroleum (NYSE:BP), a giant British oil company has struck a contract with Oman’s authorities to form a free zero teamwork ,
to assess wind energy and solar energy data of 8.000 kilometers of Osman’s lands, renewable projects are also expected to be launched.

Total Energies (NYSE:TTE), a giant French oil company has sold its share in block 14 in Angola to the domestic company Somoil,
noting that it wants its purse to include the low costs and emissions assets.

Shell (NYSE:RDS.A), headquartered in London was in light spot as it has won the latest main auction of offshore wind energy ,
by landing with Scottish Power Renewables in the world’s first floating wind energy farm.

 

The sector situation for the week 

The geopolitical dangers are rising along with fears of a Russian invasion of Ukraine and the latest news of Houthi drone attack in UAE.

Petro has promised to replace the production of oil and gas with an economy based on knowledge and tourism,
noting that there are about 12 years to finish the current producing assets.

With a production of two billion barrels of a 6.5 year-reserved crude,
Columbia is still an important resource of thick crude to the complicated refineries in USGC, the market’s biggest outlet.

The oil sector updates 

UAE attack escalates the regional tensions 

A killing missile attack in ADNOC’s stockpiles area in the industrial zone, near Abu Dhabi’s airport led to a sudden decline in the security climate of the Arab peninsula,
while concerns of more potential attacks have been raised.

The USA is studying Europe’s gas emergency plans

U.S. authorities have conducted talks with several giant oil and gas companies about emergency plans to provide Europe,
with natural gas in case of a Russian-Ukrainian conflict has struck,
as the Russian pipeline of course will be suspended.

Libyan oil production is back 

As four crude fields and condensers in Libya’s western regions resumed work last week, the northern African country has raised its production to 1.2 million barrels per day.

However this short respite doesn’t change the fact of potential disturbances in the future, because the lack of money makes adequate maintenance a hard issue.

OPEC sees that oil markets are well-supported in 2022

OPEC’s latest monthly report repeated the group’s vision of a well-supported market in 2022.

As the global demand rose by 4.15 million bpd yearly,
exceeding the 100.000 bpd in the third quarter.

 

 

A court in the UK sacks climate’s activists 

A supreme court in the UK denied activists’ allegations, accusing oil and gas arranging authority of assessing oil and gas projects unlawfully on a pre-tax basis.

This forms an example of more issues, being aroused by activists against the UK government.

Gazprom doesn’t provide Yamal pipeline with gas

After one month of the reversed supplies through Yamal’s pipeline, Gazprom, the giant Russian oil company ,
has again sent shocking waves  all around Europe by not supplying any gas to Europe through Yamal in February 2022.

Japan wants to drill for oil 

Inpex (TYO:1605), a Japanese oil and gas explorer, is conducting drilling operations along the country’s western coast from March to July,
hoping to find natural gas residues to ease Japan’s dependence on imported hydrocarbons by 98%.

Norway grants 53 licenses to drill for oil

In its latest external licensing auction APA 2021, Norway offered 53 blocks to giant regional companies such as Equinor (NYSE:EQNR),
Aker BP (FRA:ARC) and London Energy (STO:LUNE) to get licensing shares of 26, 15 and 10 in a row.

China’s Bunker occupies Singapore

PetroChina, a Chinese oil and gas company has become the world’s biggest offshore fuel exporter to Singapore,
the world’s biggest  fuel importer, exceeding the ex-leader,
Shell (NYSE:RDS.A) followed by the world’s leading companies  Vitol, Trafigura and Glencore.

The biggest German producer of energy  supports the liquefied gas station

The chief of RWE (FRA:RWE), Germany’s biggest producer of energy, said if the country’s supply security,
was narrowed to gas at the end, he would be in need of the liquified gas station in Brunsbüttel.

China’s coal production hits its highest ever

In December, China’s coal production of 384.67 million tons was the highest ever,
exceeding November’s production by 4% to put an end to a year when China ordered its mine workers to work with maximum energy.

India is getting close to Iraq

Reports has shown that Hindustan Petroleum, an Indian government company that was about to finish expanding work in Vizag refinery of nearly 300.000 bpd,
has struck  an importing deal with SOMO, Iraq’s government oil marketing company to buy more than 100.000 billion tons per day from Al-Basrah.

 

 

 

Oil is at the highest level since October 2014 and the labor market is improving in Britain

Oil is at the highest level since October 2014 and the labor market is improving in Britain

Oil is at the highest level since October 2014 and the labor market is improving in Britain: The current tensions in the Middle East have been reflected positively on oil,
particularly in the United Arab Emirates, after yesterday’s incident, which killed 3 people. 

Evest follows market developments in the following report.

Topics:

Oil rises under the geopolitical developments in the UAE

Positive dynamics in Asia and closing in on Wall Street

Gold keeps its gains

UK labor market booming after interest rate hike last month for the first time since the pandemic

Average profits growth

 

 

 

Oil rises under the geopolitical developments in the UAE

Oil prices rose on Tuesday with rising geopolitical tensions, and Brent crude trading above $87 per barrel,
the highest level since October 2014.

On the eve of this, it became known about the impact of drones on the territory of the United Arab Emirates,
which resulted in the death of three people.
The UAE authorities charged the Yemeni Houthi rebels with carrying out the strikes.

Three oil tanks in Abu Dhabi were damaged by the explosion that resulted in the attack.
In addition, the fire started inland at the international airport in Abu Dhabi.

The cost of March Brent oil futures on the London Stock Exchange Futures is $87.3 per barrel on Tuesday,
$0.82 (0.95%) higher than the closing price of the previous session. 

As a result of Monday’s trading, these futures rose by $0.4 (0.46%) – to $86.48 per barrel.

The price of West Texas Intermediate crude futures for February in electronic trading on the New York Mercantile Exchange (NYMEX) is $84.92 per barrel,
$1.1 (1.32%) higher than the final value of Friday’s session.

On Monday, the main trading of WTI was not held because of a holiday in the United States.

According to Bloomberg experts: “The shortage of oil supply while maintaining strong demand means that the market situation is more difficult than expected.”

Positive dynamics in Asia and closing in on Wall Street

The stock exchanges were closed in the United States on Monday because of the celebration of Martin Luther King Day.

The positive dynamics of stock indices prevailed in Asia today, Tuesday, with Japan’s Nikkei index rising 0.5%,
China’s Shanghai Composite 0.9%, and Hong Kong’s Hang Seng 0.1%.

On Monday, the People’s Bank of China (PBOC, the country’s central bank) cut two key interest rates to support the Chinese economy.

The one-year medium-term lending facility (MLF) program was reduced by 10 basis points (bp) to 2.85% per annum from 2.95%,
and the seven-day reverse buybacks interest rate was reduced by 10 basis points to 2.1%.

MLF is an important lending tool used by the Central Bank of China to provide liquidity to commercial banks,
and directly affects the prime interest rate (the basic loan rate, LPR),
which became a standard in the summer of 2019.

 

Gold keeps its gains

Gold prices maintained their gains on Monday, with expectations of tightening monetary policy in the United States.

Spot gold rose by 0.1 percent to $1819.41 an ounce, while US gold futures rose by 0.1 percent to $1818.80. US markets have been closed for a public holiday.

Although gold is considered an inflationary hedge, it is very sensitive to rising U.S. interest rates,
increasing the opportunity cost of holding non-yield alloys.

US 10-year Treasury yields hit a two-year high last week amid expectations of higher interest rates.

the US Federal Reserve’s January 25-26 meeting had a key role after policymakers indicated that they would start raising interest rates in March to curb inflation. 

According to experts: “Market participants are likely to refrain from buying gold before the US Federal Reserve raises the first interest rate,
perhaps hoping that next week’s Fed meeting will give them more signals or make it clear that the Fed will start the rate hike cycle in March.”

Reflecting the broader morale, data on Friday showed speculators cut their net gold deals at Comex in the week ending January 11.

On the other hand, spot silver rose by 0.1% to $22.97 per ounce, platinum rose by 0.4% to $974.32, and palladium increased 0.5% to $1887.19.

UK labor market booming after interest rate hike last month for the first time since the pandemic

British employers added 184000 employees to their payroll in December, showing little impact of the Omicron variant of the Coronavirus,
while vacant jobs hit a new record level, which could increase inflation concerns at the Bank of England.

On Tuesday, the Office for National Statistics said the broader unemployment rate in the three months to the end of November fell to 4.1 percent,
below economists’ expectations in a Reuters poll, to stabilize at 4.2 percent, its lowest level since June 2020.

British Finance Minister Rishi Sunak said, “Today’s figures are evidence of a booming labor market,
with employee numbers rising to record levels and repetition notifications at their lowest level since 2006 in December.”

concern about potential labor shortages and medium-term wage pressures had a key role,
in raising interest rates last month by the Bank of England for the first time since the start of the pandemic

Financial markets expect a greater than 80% chance that the Bank of England will raise interest rates again on February 3 after its next meeting.

The performance of the British labor market was stronger than predicted by the Bank of England late last year,
with unemployment falling despite the end of the government’s job support program, which supported more than a million workers in September.

More recently, the increase in Covid- 19 cases associated with the Omicron variant of the Coronavirus,
has caused widespread employee absences and caused increased demand in the hospitality sector.

But most economists expect that the adverse effects won’t last long.

 

Average profits growth

Tuesday’s data showed that average profits growth in the three months to November were 4.2% higher than the previous year ,
in line with economists’ expectations – while vacancies in the three months to December were 1.247 million.

The Office for National Statistics (ONS) said that it believed that temporary factors,
that had negatively affected wage increases earlier in 2021 had now largely disappeared.

In nominal terms, wage growth is much higher than the 2-3% range seen before the pandemic,
and potential inflation concerns in the Bank of England due to weak basic productivity growth.

But rapidly rising inflation weakens workers’ high wage benefits.

Wages excluding bonuses were fixed in inflation-adjusted terms in the three months to November, the weakest performance since July 2020.

Oil stabilizes What’s with the OPEC meeting?

Oil stabilizes What’s with the OPEC meeting?

Oil stabilizes What’s with the OPEC meeting: OPEC meeting and continuing with the plan to gradually increase production, had a key role yesterday.

This gave markets an opportunity to take stock again. 

Evest follows market developments in the following report.

topics:

Oil stabilizes after yesterday’s sharp rally

The next OPEC + meeting

Which OPEC country will grow in production?

OPEC experts develop three scenarios for market development

In the case of a low scenario

Under the high scenario

For the first time in history Toyota is the bestseller in the United States

 

Oil stabilizes after yesterday’s sharp rally

Oil prices change slightly during the Asian trading on Wednesday, after rising sharply on Tuesday due to OPEC +’s decision ,

to keep the plan to increase oil production by 400 thousand barrels per day in February.

The cost of March Brent oil futures on the London Stock Exchange Futures is $80.06 per barrel on Thursday, $0.06 (0.08%) higher than the closing price of the previous session.

As a result of Monday’s trading, these futures rose by $1.2 (1.3%) to $80.00 per barrel.

The price of West Texas Intermediate crude futures for February in electronic trading on the New York Mercantile Exchange (NYMEX) is $77.01 per barrel,
$0.02 (0.03%) higher than the final value of the previous session.

By the end of Tuesday’s trading, the value of these futures had increased by $0.91 (1.2%) to $76.99 per barrel.

After the January meeting, OPEC + ministers decided to abide by the plan previously adopted to increase production in February,

despite expectations of a market surplus and the spread of the new Omicron virus strain.

 

The next OPEC + meeting

The next OPEC + meeting is scheduled for February 2.

Peter McNally of Third Bridge said that new OPEC + oil shipments indicate “a consensus of a group of producing countries that oil demand,
will continue to grow despite some restrictions caused by Omicron.”

Sources said that the American Petroleum Institute said on Tuesday evening that US crude inventories fell by 6.4 million barrels in the week ending December 31.

At the terminal in Cushing, where oil traded on the New York Stock Exchange is stored, reserves rose by 2.3 million barrels.

Official inventory data will be released on Wednesday, and in a Standard & Global Platts poll,
analysts predicted that the US Department of Energy report would indicate a 4.4 million barrel reduction in oil inventories.

The oil market remains uncertain due to the spread of the Omicron strain, but it does not affect the change in oil demand. 

Which OPEC country will grow in production?

Iraq is the largest beneficiary of compensation now – almost 800 thousand barrels per day of low production,
the country plans to increase 30 thousand barrels per day in January 2022, 50 thousand barrels per day in February,
100 thousand barrels per day in March, 150 thousand barrels per day in April,
200 thousand barrels per day in May and 250 thousand barrels per day in June.

Kazakhstan, which will have to make up just over 500 thousand barrels per day,
plans to cut 100 thousand barrels per day in May and 400 thousand barrels per day in June

Meanwhile, OPEC + reported that OPEC countries produced 580 thousand barrels per day less than the plan
(Angola produced 300 thousand barrels per day less, Nigeria – 250 thousand barrels per day) in November,
OPEC + produced 113 thousand barrels less (Malaysia – 140 thousand barrels less, Azerbaijan – 56 thousand barrels less,
Kazakhstan – 110 thousand barrels, Russia – 30 thousand barrels per day).

According to the OPEC + Technical Committee, the trade reserves of OECD countries in November reached 2.7 billion barrels,
an increase of 221 million barrels, which is lower than it was in 2015-2019.

OPEC experts develop three scenarios for market development

As noted, OPEC experts analyzed three market development scenarios.

According to the underlying scenario, global oil demand in 2021 will increase by 5.65 million barrels per day in 2022 ,
by 4.15 million barrels per day – up to 100.8 million barrels per day. 

Meanwhile, the global oil supply will grow by 7 million barrels per day. – Up to 102.2 million barrels per day,
of which 5.2 million barrels per day will be produced by OPEC + countries – Up to 49 million barrels per day,
and other non-OPEC countries will increase production by 1.7 million barrels per day – up to 48 million barrels per day. 

As a result, by the end of the year, the oil surplus will reach 1.4 million barrels per day.

The excess supply will already be observed in January 2022 at 0.8 million barrels per day,
in February – 1.3 million barrels per day, in March – 2.1 million barrels per day. 

Meanwhile, according to the underlying scenario, OECD countries’ commercial oil reserves at the end of 2021 will be 212 million barrels, below the 2015-2019 level. 

Reserves will continue to rise, but remain below the 2015-2019 level. That’s until December 2022, when they reach 24 million barrels. 

 

In the case of a low scenario

In the case of a low scenario, when oil demand grows by only 3.8 million per day – up to 100.3 million per day,
and non-OPEC countries not participating in the OPEC+ agreement will increase production by only 1.6 million per day what It reaches 47.9 million barrels per day,
the surplus by the end of 2022 will reach 1.8 million barrels per day, and in January – it has already reached 2.1 million barrels per day.

In this case, trade reserves will already exceed the 2015-2019 level in October 2022 and by the end of the year will be 90 million barrels above this index.

Under the high scenario

Under the high scenario, demand for oil in 2022 will rise by 4.4 million barrels per day to 101.1 million barrels,
per day and supply by 7.1 million barrels per day to 102.3 million barrels per day,
while non-OPEC and OPEC + member States will increase production by 1.8 million barrels per day. 

In this case, the surplus will reach 1.2 million barrels per day by the end of 2022, reaching 0.7 million barrels per day in January,
and commercial stocks will rise but will remain below 2015-2019 over the course of the year. By the end of the year, it will be at 13 million barrels below.

For the first time in history Toyota is the bestseller in the United States

In 2021, Toyota Motors ranked first in US auto sales for the first time in history, surpassing its main rival General Motors.

Toyota has boosted sales in the United States by about 10% since 2020, reaching 2.3 million cars. In the meantime,
General Motors sales declined by about 13% to 2.2 million cars.

According to automotive news, General Motors has been a leader in the American auto market since 1931.

Toyota’s success was largely supported by the decision to store car electronics microchips before the start of the cut,
with the Japanese company first betting on restoring demand for cars in the United States, the Wall Street Journal wrote.

In the meantime, Toyota’s management does not expect to maintain its leadership in the American market.

“To be clear, this was not our goal and we do not believe that it will continue in the long term,” said Jack Hollis,
senior vice president of Toyota North America.

In 2021, US auto sales were approximately 15 million, according to research firm J.D. 

Total U.S. car sales in 2021 were approximately 15 million, according to research firm J.D.
This is slightly more than in 2020 but far less than the 17 million cars sold annually and recorded during the previous five years.

Positive oil trading ahead of the OPEC meeting  and the dollar rebounds against the sterling and the yen

Positive oil trading ahead of the OPEC meeting  and the dollar rebounds against the sterling and the yen

Positive oil trading ahead of the OPEC meeting  and the dollar rebounds against the sterling and the yen: Traders are awaiting the upcoming OPEC meeting,
at which the organization will announce whether it will maintain or increase current production levels. 

Evest follows market developments in the following report.

Topics:

Oil rises and investors are waiting for the OPEC meeting

OPEC + Monitoring Committee

Standard & Poor’s completes its record run by setting a new high on the first trading day of 2022

Strong gains for Tesla and Apple 

The dollar is weak against the euro and strong against the sterling and the yen

 

Oil rises and investors are waiting for the OPEC meeting

Oil prices rise Tuesday before the forthcoming OPEC + meeting.

The cost of Brent crude futures for February on the London Stock Exchange ICE Futures on Thursday is $79.42 per barrel,
$0.44 (0.56%) higher than the closing price of the previous session. 

As a result of Monday’s trading, these futures rose by $1.2 (1.5%) to $78.98 per barrel.

The price of West Texas Intermediate crude futures for February in electronic trading on the New York Mercantile Exchange (NYMEX) at this time is $76.42 per barrel,
$0.34 (0.45%) higher than the final value of the previous session.

By the end of Monday’s trading, the value of these futures rose by $0.87 (1.2%) to $76.08 per barrel.

OPEC + Monitoring Committee

Ministers of the OPEC + Monitoring Committee, and then ministers of all OPEC + countries,
will meet on Tuesday to discuss the state of the oil market and to decide whether to change the plan to increase oil production by 400,000 barrels per day in February,

which was approved in July 2021.

Bloomberg’s OPEC + sources stated that the organization intends to maintain the pre-approved plan again.

On Monday, OPEC adjusted its oil market forecast for the first quarter of 2022.

According to new forecasts, the oil supply on the world market from January to March will exceed demand by 1.4 million barrels per day.

Previous projections assumed that the oversupply would be 25% higher.

The change in expectations is due mainly to the outlook for oil supplies that were weaker than previously assumed by non-OPEC members.

The previous day, OPEC ministers had elected a new Secretary-General of OPEC at an extraordinary meeting ,
effective August 1, 2022, Haytham Al-Qays of Kuwait was elected for a three-year term, the organization said.

 

Standard & Poor’s completes its record run by setting a new high on the first trading day of 2022

US stocks rose confidently on Monday, with the Dow Jones Industrial Index and the Standard & Poor’s 500 ending their first session of 2022 at record levels.

At the end of 2021, Standard & Poor’s added 26.9%, the Nasdaq Composite Index – 21.4%, and the Dow Jones Industrial Index – with an average of 18.7%.

The Dow Jones Industrial Index rose 246.76 points (0.68%) at the close of the market on Monday to 36585.06. Standard & Poor’s 500 rose by 30.38 points (0.64%) to 4796.56 points.

The Nasdaq Composite Index rose by 187.83 points (1.2%) to 15832.8 points.

Experts say the start of the year may be less successful for the US stock market.

The emergence of Covid- 19 vaccines, the lifting of quarantine restrictions,
as well as the soft policy of the Federal Reserve System (FRS) and other global central banks,
boosted financial markets last year.

This year, however, economists warn that the Fed plans to tighten monetary policy, which will put pressure on markets.

 

Strong gains for Tesla and Apple

Apple’s stock price rose 2.5 percent on Monday to $182.01. The stock price rose to $182.88 during the session,
increasing the company’s capital by more than $3 trillion,
but it could not remain at this level, for its decline with the closing of the market.

Tesla’s stock rose by 13.5% – up to USD 1199.78. Deutsche Bank analysts raised the company’s stock target to $ 1200 from $ 1000.

Last year, Tesla increased the supply of electric cars by 87%, to 936 thousand units.

The result exceeded both the expectations of experts surveyed by FactSet at 897 and Tesla’s expectations,
which planned to increase shipments by 50%.

Stocks of Ford Motor and General Motors rose by 4.8% and 4.3% respectively.

The dollar is weak against the euro and strong against the sterling and the yen

The United States dollar is falling slightly against the euro while looking strengthened against the yen in trading on Tuesday.

The ICE dollar index, which shows dollar dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling, Swedish krona) ,
adds 0.01%, and the broader WSJ dollar index also adds 0.01%.

The euro pair traded against the dollar at 1.1304 on Tuesday, up from $1.1299 at the end of the previous session.

While the US currency recorded against the yen 115.79 yen, from 115.32 yen the previous day.

The sterling lost 0.1% against the dollar during the dealings, and the Australian dollar increased 0.3%.

Issues of concern to foreign exchange traders at the end of last year – the situation under the Coronavirus and inflation prospects – also remained dominant in early 2022.

“This year started the same way it ended last year, and it is unlikely that much new information will emerge this week,” Danske analysts said.

The dollar value of the ICE index rose by about 7% at the end of 2021, the best annual dynamic since 2015.

The dollar was backed by predictions that the Federal Reserve System (FRS) would soon begin to raise its prime interest rate,
amid a strong economic recovery in the United States and high inflation.

The consumer price index PCE Core, which excludes food and energy costs, rose by 4.7% in November, the fastest since 1982.

The Fed plans to cut the entire asset buyback program by March 2022,
and most of its executives expect three base price increases in the year that has already begun.

As neither the European Central Bank nor the Bank of Japan plans to tighten policy so far,
the dollar’s strength against the euro and yen is likely to continue, as the Trading Economics website points out.

On Wednesday, the Fed will release the minutes of the December 14-15 meeting of the Federal Open Market Commission (FOMC),
which could help market participants better understand the mood of central bank leaders.

Oil continues to gain and Tesla stock continues to decline sharply US European and Asian stocks are mixed

Oil continues to gain and Tesla stock continues to decline sharply US European and Asian stocks are mixed

Oil continues to gain and Tesla stock continues to decline sharply US European and Asian stocks are mixed: Many exchanges resumed operation after the long Christmas holidays,
making trading slightly larger in size than in previous days. 

 

Evest follows market developments in the following report.

Topics:

Oil continues to gain in anticipation of the next OPEC meeting

A decline in Japan and South Korea and a rally in China 

Dow Jones and Standard & Poor’s set new records and a sharp decline in Nasdaq

The US foreign trade deficit in goods increased to a record level

Tesla continues to decline

A collective decline in European stocks and the United Kingdom is rising alone

 

Oil continues to gain in anticipation of the next OPEC meeting

Oil prices extended their moderate gains on Thursday morning,
thanks to data on a larger-than-expected reduction in United States oil stocks last week.

The cost of Brent crude futures for February on the London Stock Exchange ICE Futures is $79.39 per barrel,
$0.16 (0.2%) higher than the closing price of the previous session.

As a result of Wednesday’s trading, these futures rose by $0.29 (0.4%) to $79.23 per barrel.

The price of West Texas Intermediate crude futures for February in electronic trading ,
on the New York Mercantile Exchange (NYMEX) is $76.74 per barrel by this time,
after rising by $0.18 (0.24%) from the final value of the previous session.

By the closing of the previous day’s trading, the value of these futures rose by $0.58 (0.8%) to $76.56 per barrel.

The price of oil has reached its maximum value since the end of November during the trading session the previous day.

Since the beginning of the year, the prices of both brands have risen by more than 50%,
which has not been the case for more than a decade, according to Trading Economics.

The United States commercial oil reserve fell by 3.58 million barrels last week,
while the experts interviewed by Bloomberg predicted a decline of 2.7 million barrels.

Gasoline inventories fell by 1.46 million barrels and distillates by 1.73 million barrels.

In addition, investors are increasingly likely to exclude new travel restrictions from governments amid new evidence ,
that the Omicron virus strain is less dangerous than previous options.

Market interest now goes to the OPEC + meeting on January 4. At this meeting,
representatives of oil-producing countries will discuss plans to increase production by 400 thousand barrels per day planned for February.

 

 

A decline in Japan and South Korea and a rally in China 

Stock indices in Asia and the Pacific show mixed dynamics on Thursday morning. 

The Japanese Nikkei 225 index fell by nearly 0.4%, the Australian S & P/ASX 200 index fell by 0.1%, the South Korean Kospi index fell by 0.448%,
and the Chinese CSI 300 index rose by 1.03% and Hong Kong’s Hang Seng index rose by 0.18%. 

US Standard & Poor’s futures lost 0.07% from the previous day’s closing, indicating a potentially negative correction in the US stock market on Thursday.

Dow Jones and Standard & Poor’s set new records and a sharp decline in Nasdaq

US stock indexes Dow Jones and Standard & Poor’s rose slightly on Wednesday’s trading basis, and that was enough for them to reach new records.

The Nasdaq composite index ended the session in the red zone as trading activity declined during the holiday period.

By the close of the market on Wednesday, the Dow Jones Industrial Index had risen by 90.42 points (0.25%) and reached 36488.63 points.

Standard & Poor’s 500 rose by 6.71 points (0.14%) to 4793.06 points.

The Nasdaq Composite Index lost 15.51 points (0.1%) to 15766.22.

The attention of traders remains on the news about the new Omicron strain,
and it is currently believed that the spread of this strain will not require the introduction of strict quarantine procedures that can restrict both human movement and commercial activity.

According to experts: “The market depends on the fact that Omicron is a milder strain of the coronavirus, although it spreads more easily.”

The US foreign trade deficit in goods increased to a record level

Statistics released on Wednesday showed that the US foreign trade deficit in goods increased by 17.5% in November,
to a record high of $97.8 billion, and the deficit in October was $83.2 billion.

US merchandise exports fell by 2.1% to $154.7 billion last month, and imports rose 4.7% to $252.4 billion.

In the meantime, the index of pending home sales fell by 2.2% in November from the previous month after jumping 7.5% in October,
the National Association of Realtors (NAR) reported.

Experts predicted an average rise of 0.5%.

The index fell 2.7% from November last year. Thus, the decline accelerated compared to October 1.4%.

 

Tesla continues to decline

Tesla’s stock price fell by 0.2%. The company’s president, Elon Musk, sold another portion of Tesla’s stock on Tuesday – for $1 billion.

Taking into account previous sales, Musk sold 10% of his Tesla market share, he promised respondents to his Twitter poll.

A collective decline in European stocks and the United Kingdom is rising alone

European shares fell on Wednesday, except for the UK, which resumed operations after a long holiday.

The composite index of the largest companies in the Stoxx Europe 600 region fell by 0.11% to 487.98 points.

The British FTSE 100 index ended trading at 0.7% higher, hitting a 22-month high.

The French CAC 40 index fell by 0.3%, the German DAX – 0.7%, the Italian FTSE MIB – 0.4%, and the Spanish IBEX 35 – 0.2%.

The focus of the traders remains on the news about the new Covid-19 strain, Omicron.

The increase in infections in many European countries negatively affects the mood of traders.

 

Oil prices rise again as inventories decline

Oil prices rise again as inventories decline

Oil prices rise again as inventories decline: Yesterday, the American Petroleum Institute declared a drop of 3.670 million barrels in crude oil stockpiles,
while analysts expected a decline of less than 2.633 million barrels for the week.

However U.S. Oil stockpiles dropped by 65 million barrels since the year’s beginning.

Evest follows market developments in the following report.

Topics:

The American Petroleum Institute

Oil prices for the week

Oil production weekly rates

Market’s drivers latest decisions

The oil sector updates of the week

OPEC reduces the targeted production of November

Manchin’s veto prevents Biden from a bundle of  $ 1.7 billion

Libya declares force majeure over many of exporting stations

A rise in the European gas prices

The UK government wants to adapt to the climate policies of the new projects

Chevron’s farms beat Suriname in Shell

Toyota lines are hindered by a supplying chain

Rosneft pledges to achieve zero-net emissions by 2050

 

The American Petroleum Institute

In the last week, the API stated a decline of 815.000 barrels in oil stockpiles,
compared with the 2.60 million barrels, expected by analysts.

The API proclaimed a rise of 3.701 million barrels in gasoline stockpiles for the week ended Dec 17,
following the previous week’s rise of 426.000 barrels.

Distillates stockpiles declined by 849.000 barrels throughout the week, after it dropped by 1.016 million barrels in the previous week.

This week, Cushing stockpiles rose by 1.272 million barrels.

Oil prices for the week

While fears of the demand decline rose due to Omicron on going infections, offer cases in Libya and the decline of U.S. stockpiles led again to a rise in prices.

As a temporary support for oil prices, the clashes in Libya caused the declaration of force majeure over oil exports to lead to progressive pressures on prices.

  Also the news of U.S. crude stockpiles decline may be for the fourth week in a row, all these rising factors made prices rise on Tuesday morning.

 At the beginning of the day, West Texas Intermediate (WTI) crude rose more than 1% to  $69.73 a barrel, only $1 up throughout the week.

Brent crude rose more than 1% as well, to $72.56 a barrel, also $1 below last week’s rates.

On Tuesday, oil prices rose 3% before data was published, after the 5% prices drop on Monday due to Omicron fears.

Oil production weekly rates

U.S. Oil production edged up, but consistently by the week ending Dec 10 _ the last week,
the EIA published data about the production _ U.S. crude oil production was 11.7 million barrels per day (bpd) for the second week in a row,
with a rise of 700.000 bpd since the year begging.

Market’s drivers, latest decisions

British Petroleum ( NYSE:BP) will buy the share of the American pipelines, BP Midstream partners (NYSE:BPMP) for  $723 million as a total price,
thus this is a structural simplification released by the state which no longer presents income tax replacement for limited  partnerships.

Shell (NYSE:RDS.A) has signed a contract of developing the wild block 10 in Oman by the share of 53%,
aiming at producing 500 million cubic feet of gas from Saih Rawl field by 2023.

Presidion Petroleum, controlled by the private sector,
is conducting talks to buy about 5000 shale oil wells from Exxon Mobil (NYSE:XOM) in Fayetteville shale blocks in Arkansas,
with initial  estimations of  $500 million.

 

The oil sector updates of the week

 

OPEC reduces the targeted production of November

OPEC’s movement to reduce production is at least up to 117% in November,
affected in the first position by Angola and Nigeria’s struggling against the production recovery and the endless maintenance issues.

Manchin’s veto prevents Biden from a bundle of  $ 1.7 billion

Biden’s administration will have to renew the project of infrastructure law “better rebuild” of $1.75 trillion after senator Joe Manchin’s veto,
which raised the possibility of excluding some parts such as methane fees from the final bill.

Libya declares force majeure over many of exporting stations

Libya’s national oil organisation declared the force majeure over crude oil exports in ports of Az Zawiyah and Mellita in the west of the country ,
after oil facilities’s guardians had taken the responsibility and the closure of production in most of the African countries’ fields in the west.

Aker BP-Lundin Mega Deal is constructing an NCS giant

Aker BP, the producer who concentrates on Norway will buy Lundin Energy (STO:LUNE) in the north sea for $14 billion ,
to unite efforts to become the second biggest company in the Norwegian Continental shelf.

A rise in the European gas prices

As gas delivery continues through the Russian pipelines to Germany at low levels and the vanishment of releasing Nord Stream 2 this year,
the European TTF index rose for the second day in a row to 149 Euro per megawatt hour this week (approximately $52 per million British thermal unit).

 

The UK government wants to adapt to the climate policies of the new projects

After weeks of campo’s endangering, the UK government has released a national consultation about the future design of oil and gas licensing,
seeking to guarantee that any new licences will meet the UK commitment to the climate changes.

Chevron’s farms beat Suriname in Shell

The giant American oil company, Chevron (NYSE:CVX) sold one third of the 60 stocks in the offshore block 5 licence in Suriname,
just after a couple of months it has struck a deal of production sharing for 30 years in the most recent offshore shallow bid in the country.

Toyota lines are hindered by a supplying chain

Toyota motor corp (TYO:7203), the Japanese cars manufacturing company,
has declared that it will stop production in five of its factories in January 2022 due to the lack of chips and the disturbances of the supply chain,
after it has already slowed down the American production.

Qatar is sponsoring the campaign of the small nuclear station in the UK

Qatar investment authority has invested $110 million in the Rolls Royce project for improving small nuclear stations,
which is expected to operate by the beginning of 2023,
to enable the startup work unit to collect the needed capital.

Rosneft pledges to achieve zero-net emissions by 2050


Rosneft (MCX:ROSN), the Russian oil corporation, controlled by the state has  agreed on a new strategy for 2030,
to achieve zero-net by 2050 (range1&2 of emissions) this is the first time a leading Russian company gives itself a strict final date to reduce carbon.

Oil stabilizes And a big rebound in American and Asian stocks

Oil stabilizes And a big rebound in American and Asian stocks

Oil stabilizes And a big rebound in American and Asian stocks: Markets are recovering significantly today, following the reassuring statements from the US administration about the Omicron variant. 

Evest follows market developments in the following report.

Topics:

Oil stabilizes amid Europe’s energy crisis

US stocks rise significantly

How did stocks do?

Asian indices are in the green Zone

 

Oil stabilizes amid Europe’s energy crisis

Oil prices stabilized on Wednesday after rising steadily at the previous meeting amid Europe’s energy crisis.

The cost of gas in the region exceeded the level of $2000 per thousand cubic meters,
and experts are of the view that these conditions will lead to a growth in demand for petroleum products for power generation.

The oil market support was also supported by data from the American Petroleum Institute on Wednesday,
which showed a decline in US crude reserves last week. 

According to the American Petroleum Institute, US oil reserves declined by 3.67 million barrels.

The decline will be observed for the fourth week in a row if confirmed by official data.

The US Department of Energy will publish a weekly report on the country’s energy reserves on December 22.

The cost of Brent crude futures for February on the London Futures Exchange on Wednesday is $73.95 per barrel,
$0.03 (0.04%) lower than the closing price of the previous session. 

As a result of Thursday’s trading, these futures rose by $2.46 (3.4%) to $73.98 per barrel.

The price of West Texas Intermediate crude futures for February in electronic trading,
on the New York Mercantile Exchange (NYMEX) is $71.21 per barrel, $0.09 (0.13%) higher than the final value of the previous session. 

By the end of Tuesday’s trading, the value of these futures had increased by $2.51 (3.7%) to $71.12 per barrel.

The price of Brent crude fell by 4.7% during the previous two sessions, Friday and Monday,
and West Texas Intermediate by 5.7% because of concerns about the rapid spread of the new strain of Covid-19, Omicron and its implications for global oil demand. 

 

US stocks rise significantly

US stock indices rose significantly on the basis of Tuesday’s trading, while the Dow Jones and Standard & Poor’s 500 were the highest in the past two weeks.

The Dow Jones Industrial Index rose 560.54 points (1.6%) to 35492.7 points on Tuesday.

At the end of trading, the value of Standard & Poor’s 500 rose by 81.21 (1.78%) to 4649.23 points.

The Nasdaq Composite Index rose by 360.14 points (2.4%) to 15341.09 at the close.

Investor morale improved after the presidential administration announced it was intensifying its fight against Omicron. 

US President Joe Biden urged Americans to get vaccinated against Covid-19 and not panic about the emergence of new strains of the coronavirus. 

He said the government would buy 500 million home tests for the coronavirus and would begin handing it over in January.

Thus, on Tuesday, the market recovered some of its losses during the previous three trading sessions.

The current account deficit in the US balance of payments in the third quarter of 2021 rose by $16.5 billion to $214.8 billion, the highest figure since the third quarter of 2006.

According to experts, stocks have recovered from the overreaction to the news and Biden’s new plan to launch free Covid- 19 tests starting in January.

In a report released Tuesday, the U.S. Commerce Department said that the current account deficit in the U.S. balance of payments in the third quarter of 2021 increased by $16.5 billion to $214.8 billion.

This is the highest figure since the third quarter of 2006. According to adjusted data, in April and June, the negative balance is $198.3 billion, not $190.3 billion, as announced earlier.

Trading Economics reported that analysts predicted an average deficit increase from July to September of $205 billion from previously announced second-quarter levels.

How did stocks do?

Nike recorded better than expected income and revenue for the second quarter of the fiscal year 2022 (November-September), despite a sharp decline in sales in China.

The sporting goods maker rose 6.2% on the day to become the top gainer on the Dow Jones index.

Micron Technology nearly tripled its net profit in the first financial quarter, which ended on December 2, with revenues of 33.3%, which was better than analysts’ expectations. 

In addition, the company had a positive outlook for the current quarter.

The cost of the memory slice maker rose by 10.5%, the best in more than a year.

Oracle’s stock fell by 0.1%.

The international rating agency Moody’s Investments Service has put the Oracle ratings,
under review with the possibility of downgrading after news of the purchase of Cerner Corp.

specializing in electronic health records, for $28.3 billion to finance the transaction.
Serner’s stocks gained 0.2%.

Proctor & Gamble’s stock fell by 0.1%.

The world’s largest consumer goods manufacturer calls for a number of US dry shampoos to detect cancer-causing gasoline.

United Parcel Service, the world’s largest express delivery service, has ordered 19 new wide-body cargo aircraft from Boeing Co.

Delivery of aircraft is scheduled for 2023-2025. UPS stocks rose by 2.3% and Boeing by 5.9%.

 

Asian indices are in the green Zone

Stock indices in the Asia-Pacific region on Wednesday morning also show positive dynamics, although the overall rate of increase is relatively modest. 

Japan’s Nikkei 225 index rose by 0.2%, China’s CSI 300 index by 0.08% and the Australian S & P/ASX 200 index grew by 0. 04%,
Kospi in South Korea by 0.2%, Hong Kong Hang Seng by 0.35%. 

In the meantime, US S & P 500 index futures fell by 0.12% to the previous day’s closing level,
indicating a possible negative correction in the US stock market on Wednesday.