A positive trading day for oil.. and a slight rise for the Japanese Nikkei index

A positive trading day for oil.. and a slight rise for the Japanese Nikkei index

A positive trading day for oil.. and a slight rise for the Japanese Nikkei index

A positive trading day for oil.. and a slight rise for the Japanese Nikkei index:

Oil managed slight gains in today’s session, Tuesday, after losing much of its value over the past few days.

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

Finally.. Oil rises after several sessions of sharp decline

Oil prices rose in early Asian trading today, Tuesday, after falling the previous day, but the increase in bids limited concerns about the growing spread of Covid-19. 

The price of Brent crude futures for October on the London Stock Exchange was $69.54.

It is 0.72% higher than its price at the close of the previous session. After trading results on August 9, these futures fell 2.4% to $69.04.

West Texas Intermediate crude futures in September in electronic trading on the New York Mercantile Exchange (NEMX) rose 1.02% to $67.16.

After the value of these futures fell 2.6% to $66.48 yesterday.

Brent and WTI prices fell more than 4%, Monday, August 9th, and both brands ended up trading at the lowest levels since July 19. 

To limit the spread of the Coronavirus, the “Delta” strain

Traders fear that the introduction of new restrictive measures to curb the spread of Delta-strain of coronavirus will weaken the world economy and undermine fuel demand.

Although the oil market is now more balanced in terms of supply and demand than it was for most of 2020,
concerns of new movement restrictions and a slowdown in economic growth are driving down prices, analysts say.

The decline in demand in China, the world’s largest oil importer, is of particular concern to market participants. 

Experts at investment bank Goldman Sachs cut expectations of China’s economic growth as Chinese authorities were forced to impose quarantine restrictions to contain the new Covid -19 wave. 

According to new projections, the country’s GDP will increase in the third quarter of this year by 2.3%, and for the entire year – by 8.3%. 

Previously, growth rates were projected at 5.8% and 8.6% respectively.

This week, traders are waiting to publish data from the American Petroleum Institute (API) and the US Department of Energy on the country’s energy reserves, which will be released on August 10 and 11, respectively. 

The market also focuses on monthly reviews of the OPEC and IEA markets, which will be published on August 12.

According to Reuters

According to Reuters, OANDA analyst Edward Moya said “the price of crude oil is falling as the Asian economy slows and demand declines.

The American economy is recovering and the dollar is strengthening.”

JPMorgan and Morgan Stanley cut growth forecasts for the Chinese economy on Monday.

Chinese export growth slowed in July.

Banks also predict that new Crown restrictions further hinder China’s economic development.

“Data released over the weekend showed that China’s crude oil imports were lower in July than in June.

This has also affected world oil prices.” said analysts at Dutch bank ING.

The Chinese authorities have imposed strict national restrictions on the delta viral variant.

“Several countries have learned how to live with the coronavirus.

However, China has a zero-tolerance policy with strict coronary artery restrictions.”

Norbert Rucker, business director at Swiss investment bank Julius Baer said.

The United States created more jobs

On Friday, the United States announced more jobs in the country than expected.

Therefore, the Federal Reserve may tighten the country’s monetary policy.

The price of a barrel of oil worldwide is calculated in United States dollars.

If the US dollar is strong, buying oil will cost fewer dollars.

However, Reuters reported that buying oil in other currencies would become more expensive.

Oil prices fell by more than 2% to their lowest level in three weeks.

This decline continued the sharp decline last week.

Oil prices have declined due to the US dollar rising and the concerns of new restrictions related to the coronavirus in Asian countries, particularly China.

This view also expects a slow recovery in world oil demand.

On the other hand, the dire warnings of a United Nations committee on climate change increased the grim mood after fires in Greece destroyed homes and forests.

The deadly floods in Europe have also caused atmospheric chaos.

Meanwhile, fuel demand in India rose in July to the highest level since April,
as easing pandemic restrictions and lockdowns in most states boosted industrial activity and mobility.

A modest start for Japanese indices after yesterday’s holiday

The Tokyo Stock Exchange ended modestly on Tuesday, supported by a weak yen,
but it slowed gains as the session progressed, the first of the week after a public holiday in Japan was celebrated on Monday.

The main Nikkei index ended the session 0.24% higher at 27,888.15 points,
and the expanded Topix index rose 0.36% to 1,936.28 points.

The continued bearish movement of the yen against the dollar, a positive exchange rate trend for Japanese export groups,
has been beneficial to the Japanese market, as has the forecast for a new wave of corporate results this week.

On the other hand, there was no support from Wall Street, which ended on a conflicting note on Monday,
and continued concerns about the spread of coronavirus variants have weakened momentum in the Tokyo market.

In China, Hong Kong’s Hang Seng index was optimistic, earning more than 1.1% at around 6:45 GMT,
and the Shanghai and Shenzhen Composite indices closed in the Green Zone.

 

A positive trading day for oil .. and a slight rise for the Japanese Nikkei index

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