Oil stops losses below $100 a barrel  European stock indices are mixed Oil is trying to limit its losses this week, as it rose slightly today, Wednesday, after the big decline yesterday

Evest follows market developments in the next report

containts

Oil rises after a sharp drop yesterday

European stock indices are moving in different directions
Gold is down for the third consecutive session

Oil rises after a sharp drop yesterday

Oil prices are rising on Wednesday after falling more than 6% in the previous session

May Brent crude futures rose $1.09 (1.09%) on the London ICE Futures Exchange to $101 a barrel. On Tuesday, Brent crude fell $6.99 (6.5 percent) to $99.91 a barrel

West Texas Intermediate crude futures for April at this moment in prices in electronic trading on the New York Mercantile Exchange (NYMEX) rose by $0.6 (0.62%) to $97.04 per barrel. During the previous session, the contract fell by $6.57 (6.4%) to $96.44 a barrel

Brent and West Texas Intermediate oil prices reached their highest levels since 2008 on March 8 on the back of the Russian military operation in Ukraine, but since then have already fallen by 22%, indicating a “downward” trend, Market Watch notes

The drop in oil prices, in particular, has been facilitated by concerns about lower demand in China, where there is another outbreak of Covid-19, due to the imposition of quarantine restrictions in a number of regions of the country

According to Bloomberg experts: “The main characteristic of the market at the moment is high volatility. There are no fundamental factors here, it is all about geopolitics, hysteria and fear However, perhaps not so radically

Data from the American Petroleum Institute (API), released overnight, showed an increase in US oil inventories last week by 3.75 million barrels

European stock indices are moving in different directions

European stock indices did not show a single dynamics on a trading basis on Tuesday

The composite index of Europe’s largest companies, the Stoxx Europe 600, fell with the market closing down 0.28% and amounting to 435.12 points

Germany’s DAX is down 0.1%, France’s CAC 40 is down 0.2%, and Britain’s FTSE 100 is down 0.3%. Italy’s FTSE MIB rose 0.3%, while Spain’s IBEX 35 rose only 0.02%

Market participants continue to follow the Russian-Ukrainian conflict. The next round of negotiations between representatives of the two countries ended without results, and investors are waiting for its continuation in the hope of de-escalation of the conflict

According to the analysts, “It is clear that European markets are already in very negative scenarios

The index of economic expectations of investors and analysts in Germany for the next six months, calculated by the ZEW research institute, fell in March by 93.6 points, the largest drop since the index began to be calculated in December 1991

The value of the index, on the background of the conflict between Russia and Ukraine, fell to minus 39.3 points, compared to 54.3 points in February

Meanwhile, analysts at Sanford C.Bernstein noted that net outflows from Europe-focused equity funds reached a record high for the second week in a row. In their opinion, investors may continue to exit European stocks

Commodity stocks fell after metal prices fell amid the outbreak of the new Corona virus in China. Polymetal International Plc fell 22.9%, Glencore Plc – 4.4%, and Anglo American – 0.7%

Meanwhile, oil company shares rose despite the collapse in oil prices. Shares of Shell Plc rose 0.7 percent, and BP Plc 1.3 percent

Shares of Allianz SE by the end of trading were down 0.2%. The German insurance company announced the termination of insurance for new business and the rejection of new investments in Russia

UniCredit is up 0.8%. Andrea Ursella, president of UniCredit, is reported by Bloomberg that the Italian banking group is considering leaving Russia as part of an urgent review of its activities in that country

RWE AG’s share price is up 1% on strong reports from the German energy company and an increase in dividends

Gold is down for the third consecutive session

Gold prices fell for the third day in a row as commodities continued to collapse ahead of the US Federal Reserve’s main meeting, when policy makers are expected to raise interest rates

Spot gold fell 1.4% to $1,925.42 an ounce. It erased most of its gains over the past two weeks. US gold futures fell 1.8% to $1,925.80 an ounce in New York

Gold’s reversal comes days after it rose to just under $5 from a record high as Russia’s invasion of Ukraine sent commodities soaring, threatening a combination of low growth and high inflation. Prices of major products including oil have since cooled, allaying those concerns

Bullion has risen this year in part because of its appeal as a hedge against rising consumer prices. Months of speculation about a new wave of interest rate hikes looks set to peak on Wednesday, as the US central bank is expected to start tightening in order to rein in inflation

Tuesday’s report showed that prices paid to US producers rose strongly in February due to higher commodity costs, underlining the inflationary pressures that paved the way for the Federal Reserve’s rate hike this week

“Gold prices have fallen in the past three days mainly due to lower oil prices,” according to Bloomberg analysts, which brings some good news that inflation, may ease a bit

“The first rate hike from the US often signals a low point in gold, so we will see what kind of signal they send tomorrow, and how optimistic their statement is, which will likely set the short-term outlook from here

  Oil collapses to under $100 and a surprise increase for crude stock This week, the US Petroleum Institute (API) announced a sudden increase in crude oil inventories amounted to 3.754 million barrels, compared to analysts’ expectations to decline by 1.867 million barrels

US crude inventories also lost about 73 million barrels since the beginning of 2021 and about 16 million barrels since the beginning of 2020

Last week, API announced an increase in crude oil inventories by 2.811 million barrels after analysts expected a decline of 833,000 barrels

containts

Oil prices this week
Weekly oil production rates
Latest Decisions of Movable Companies for Oil Market

Oil sector updates

Oil prices this week

Oil prices declined again to below $100 this week – continuing to sell operations on Monday – where speculators abandoned high – speculative oil trade and China reserved millions of their population in some of its greatest cities in what could be a big blow to demand for oil

West Texas mediator has been trading down 6.37% to $96.45 a barrel in the mid of today- a decrease of $24 a barrel a week. Brent crude was trading down 6.36% during the day at $100.10 a barrel on the day-down about $27 a barrel a week

At the end of the day, West Texas mediator was traded for $94.94 (-7.83%), with Brent crude trading at $98.54 (-7.82%)

Weekly oil production rates

The production of US crude oil remained stagnant for five consecutive weeks at 11.6 million barrels a day ended on March 4

This represents a decrease of 1.5 million barrels a day for the pre-pandemic period

Despite the International Energy Agency’s claim that Europe could halve its dependence on Russian gas imports within a year, gas flows in March have so far averaged 30% higher than in February

Latest Decisions of Movable Companies for Oil Market
Oil sector updates

– The leading oil companies: Shell, BP and Equinor declared that they will not trade in oil and Russia products in the foreseeable future, but this is not the case with gas

– European spot gas prices fell last week due to rising supply of Russian pipelines, as prices for TTF on May 22 are hovering around €115/megawatt-hour ($40 per MmBtu)

Gazprom exports from 1 January to 15 March to non-members of the CIS are 30.7 billion cubic meters, down 28% on an annual basis, mainly because Europe is witnessing mild weather throughout winter

– The Supreme Federal Court in Nigeria has prevented the United Kingdom’s largest oil (LON-SHELL) from selling any assets in Nigeria until a resolution was reached in a fine case worth $2 billion due to an alleged oil leakage in Rivers

-The active investor Clairway Capital began to invite the board of directors of the French oil company Total Energy (NYSE:TTE) to exit its operations in Russia or face the vote of shareholders very soon

–Brazilian oil company Petrobraz (listed on the New York Stock Exchange NYSE:PBR) is approaching from concluding a deal with US private stock company “EIG Energy Partners” to sell 51% stake in the natural gas pipeline that connects Bolivia and South Brazil, assuming that the value of the deal is $500 million

Oil sector updates

OPEC maintains cautious expectations about oil markets. OPEC has warned about changing any of its 2022 forecast figures from demand risks arising from the Russian invasion of Ukraine, claiming that the lengthy war may impede the introduction of 4 million barrels a day of the growing demand this year

The European Union tightens sanctions on Russia avoiding the ban. The European Union is scheduled to adopt a new round of sanctions against Russia oil companies: Roseneft (MCX: Trnfp) and Gazprom Oil (MCX:SIBN) and imposed an investment ban on any new production and exploration projects, stressing that companies of the European Union can still buy oil from them

Pyramain basin production records a record in April. According to US Energy Information Management, oil production from Texas and New Mexico basin will rise by 70 thousand barrels a day next month to reach its highest level at 5.208 million barrels a day

Strong volatility in oil prices scare hedge funds

Hedge funds and other fundamental have reduced their upscale centers amid unprecedented fluctuations. Brent contracts were sold by 97 million barrels in the week ending on March 8, although the bullish bullets of West Texas mediator in Neemex remained unchanged

Nigeria descends to force majeure again

While oil markets are struggling to find additional sources of crude oil supplies, two major oil companies (listed on the New York Stock Exchange under the NYSE:E) and Shell (LON:SHEL) said at the same time that a force majeure in the Brass River and Bonnie Lite, respectively, after an explosion in the connected pipeline led to cut the two stations

The coal remains at the core of Chinese energy

Chinese President Shi Jinping reaffirmed the importance of coal in the country’s energy matrix, saying that China cannot put pressure on coal, as domestic production has already reached an all-time high, as China intends to avoid an energy crisis similar to the one seen last Autumn

India has become the main buyer of Urales

With the confrontation of major international trade companies in selling Ural shipments to Europe on the background of sanctions, the Indian-owned IOC (NSE:IOC) has scored 3 million barrels of Russian crude in tender this week, with a deduction between $20 and $25 a barrel

Saudi Aramco has doubled its efforts in the field of refining, treatment and marketing

Saudi Aramco (TADAWUL:2222) has taken a final investment decision to enter into a joint venture to build a 300,000 barrels a day and a vapor-based vengeance in Banggen Liaoning to be equipped with an overwhelming majority (70%) in Saudi Arabia

London is trying to restore North Sea producers in the United Kingdom to the ship

After 4 consecutive years of annual production and the abolition of many major projects for environmental reasons, the UK government has now requested from North Sea producers to promote local natural gas supply

Canadian rail strike may lead to another interruption in supplies

Thousands of workers in the Canadian railway in the Pacific (TSE:CP) threatened to strike this week, which could disable major flows for grain, potash and coal as of Friday onwards, which could lead all goods to Aviation