Oil escalates ahead of OPEC + meeting

Oil escalates ahead of OPEC + meeting


Oil escalates ahead of OPEC + meeting amid stocks decline in Asia as dollar rises


Oil prices jumped more than $1 a barrel on Monday to continue gains,
while Asian and Chinese markets declined as the US currency
rose to 20-year highs against the euro.




Oil prices rise more than $1 a barrel ahead of OPEC + meeting

Chinese stocks decline on COVID concern as Asian markets fall

Asian currencies fall as the dollar rises to 20-year highs against the euro














Oil prices rise more than $1 a barrel ahead of OPEC + meeting


Oil prices rose on Monday ahead of the OPEC + meeting,
and traders are assessing the possibility of cutting production after recent statements
by Saudi Energy Minister Prince Abdulaziz bin Salman on the prospect of such a move.


Most experts still believe that OPEC + will not reduce its oil production plan for October,
according to analysts through the fact that surplus raw materials in the summer
on the global market could quickly turn into a deficit.


The November Brent crude futures price on the London Futures
Exchange in London by Monday morning was $95.06 per barrel,
$2.04 higher than the previous session’s closing price.


As a result of Friday’s trading, these futures rose by $0.66 or 0.7 percent to $93.02 per barrel.


The price of October WTI oil futures in electronic trading on the New York
Mercantile Exchange (NYMEX) is $88.66 per barrel by this time,
which is $1.79, or 2.06 percent higher than the final value of the previous session.


By the close of the market on Friday,
the cost of these futures had risen by $0.26, or 0.3 percent,
to $86.87 per barrel.


As a result, last week, Brent crude fell by 6.1 percent,
and WTI declined by 4.6 percent.


In Europe, the energy crisis is exacerbated by the suspension
of Russian gas supplies via the Nord Stream gas pipeline,
with Gazprom reporting on Friday evening that maintenance of Nord Stream’s
only operating turbine revealed “grave violations”
and that the gas pipeline would not operate without their removal.


Shortly before that, the G7 countries had agreed to a plan
to introduce a price cap on Russia’s exported oil,
and the G7 countries, in particular,
intended to embargo insurance for Russian oil tankers
if they were sold at a price higher than a certain limit.












Chinese stocks decline on COVID concern as Asian markets fall


Chinese and Hong Kong stocks declined on Monday on growing concern over new COVID-19 lockdowns,
while Asian markets declined after strong US jobs data raised
the prospect of the Federal Reserve raising interest rates further.


Hong Kong’s Hang Seng Index fared the worst in the zone, falling by 1.4 percent,
and major technology companies fell between 1.9 percent and 3 percent,
weighing the heaviest on the index.


China’s benchmark Shanghai Shenzhen CSI 300 Index fell by 0.6 percent,
while the Shanghai Composite Index was flat.


Sentiments about Hong Kong and China worsened over the weekend
after the government imposed new restrictions in the Chinese cities of Shenzhen
and Chengdu to combat the resurgence of COVID-19 infections.


The lockdowns are the latest in a series of restrictions introduced by Beijing this year,
as part of its COVID-free policy, and the government’s refusal to
abandon the policy has taken a heavy toll on China’s economy this year.


Chinese stocks fell sharply this year, while the yuan fell to two-year lows.


South Korea’s Kospi fell 0.3 percent, and the country’s economic
activity is expected to face turmoil from Typhoon Hennamore,
one of South Korea’s worst recent storms.


On the other hand, Australia’s S & P/ASX 200 rose by 0.2 percent after
data showed the country’s services sector grew unexpectedly in August,
and Australian corporate profits grew more than expected in the second quarter.










Asian currencies fall as the dollar rises to 20-year highs against the euro


Asian currencies fell on Monday as the dollar surpassed 20-year
highs with expectations for tighter monetary policy,
while the euro hit new lows as it worried about a worsening energy crisis in Europe.


China’s yuan was among the worst performing currencies in Asia,
falling by 0.4 percent to over 6.9 percent against the dollar,
its weakest level in more than two years.


The dollar index jumped by 0.5 percent to a new 20-year high of more than 110,
while dollar futures also rose as better-than-expected nonfarm payrolls data provided
the Fed with more room to continue raising interest rates at a rapid pace.


Traders are now pricing 57 percent to raise 75 basis points by the US Central Bank later this month.


High-interest rates in the United States narrow the gap between risk-free and risky debt,
reducing the attractiveness of high-yielding Asian currencies.
It also reduces dollar liquidity, affecting foreign investment in Asia.


The dollar index, which weighs the dollar against a basket of currencies,
also benefited from the euro sharp decline.


The single currency fell by about 0.4 percent to a 20-year low of 0.9901 per dollar,
after Russia closed a major gas pipeline to the eurozone over the weekend.


The move indicates increased pressure on the bloc to obtain gas for heating during the winter,
given that Russia is the group’s main source of gas.


The energy crisis also reduces the European Central Bank’s ability to tighten monetary policy,
and the Bank is expected to raise interest rates when it meets this week,
although this rise appears to have already been priced in euros.




artical name Oil escalates ahead of OPEC + meeting


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