Oil escalates as Asian stocks rise under volatility as the US dollar stabilizes
Oil rose on Thursday morning,
Brent crude reached $97.20 per barrel and stock markets in the Asia-Pacific region grew steadily
on Thursday due to a decline in geopolitical tension in the region,
while the US dollar index stabilized, leading to higher gold prices.
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The price of Brent rose moderately after the slump last night
Asian stock markets rise as geopolitical tensions ease in the region
The dollar index stabilized on Thursday after rising 1% so far this week.
The price of Brent rose moderately after the slump last night
Oil prices showed a slight rise on Thursday morning after a sharp decline in the previous session,
given data on the increase in fuel inventories in the United States last week.
The cost of Brent crude futures for October on the London Futures Exchange was 42 cents,
0.4 percent, at $97.20 per barrel by 0250 GMT,
which was $0.17 higher than the previous session’s closing price of 0.18 percent.
According to previous trading results,
the futures price fell by $3.76, or 3.7 percent, to $96.78 per barrel.
WTI futures for September were priced on electronic trading of the New York Commercial Exchange
(NYMEX) at $90.9 per barrel by this time,
which is $0.24 more than the previous session’s final value,
with the market closing the previous day,
the value of these futures had fallen by $3.76 by 4 percent to $90.66 per barrel.
As it became known on Wednesday from a US Department of Energy report,
the country’s oil reserves jumped by 4.47 million barrels last week.
In the meantime, gasoline inventories rose by 163 thousand barrels,
while distillate inventories fell by 2.4 million barrels.
Experts expect a decline of 1.5 million barrels in oil inventories,
a fall of 1.5 million barrels in gasoline inventories
and an increase of 1 million barrels in distillate inventories.
OPEC + decided at a meeting on Wednesday to slightly increase
the share of oil production in September by only 100 thousand barrels per day,
explaining the lack of capacity in both production and processing.
Asian stock markets rise as geopolitical tensions ease in the region
In recent days, investors have been following the position on US House Speaker Nancy Pelosi’s visit to Taiwan.
Pelosi arrived in Taiwan on Tuesday evening and held several meetings with local officials on Wednesday,
heading to the next destination of her Asia Pacific tour, South Korea.
Pelosi arrived in Taiwan on Tuesday evening and held several meetings
with local officials on Wednesday,
heading to the next destination of her Asia Pacific tour, South Korea.
The Hang Singh index rose by 1.4 percent by this morning,
and the Shanghai Composite Index rose by 0.15 percent.
China’s Wharf Real Estate Investment Company rose by 3.4 percent,
despite reporting a net loss in the first half of the year
and declining revenue as demand fell due to the coronavirus outbreak.
Japan’s Nikkei 225 index rose by 0.6 percent by 8:20 am,
South Korea’s Kospi rose by 0.4 percent
and Australia’s S & P/ASX 200 advanced by 0.07 percent.
Exports jumped by 5.1 percent to $61.527 billion,
driven mainly by an increase in iron crude shipments,
and imports in June rose by 0.7 percent to $43.857 billion.
European stock futures rise
European stock markets are expected to open slightly higher on Thursday,
as investors cautiously await a meeting on the Bank of England’s latest policy condition
as well as more quarterly corporate profits.
At 0600 GMT, Germany’s DAX futures rose by 0.4 percent,
France’s CAC 40 futures rose by 0.1 percent,
and the UK’s FTSE 100 futures rose by 0.1 percent.
On Thursday, European stocks were expected to benefit largely
from the previous session’s gains,
boosted by largely positive corporate earnings,
as well as strong Wall Street closures after the US ISM non-manufacturing purchasing
managers’ index showed a sudden rebound in July,
easing the concern of an economic recession.
The dollar index stabilized on Thursday after rising 1% so far this week.
The dollar retained recent gains on Thursday,
helped by several US Federal Reserve officials who rejected suggestions
that it would slow the rate hike,
while sterling settled ahead of the Bank of England’s policy decision.
The Bank of England is expected to raise interest rates by 50 basis points to 1.75 percent,
the highest since late 2008,
but sterling was little changed in Asian trading before the decision,
due at 1100 GMT, at $1.2148.
The Bank of England has not raised its bank interest rate by half a point since it became independent in 1997.
The dollar index, which measures the greenback against six peers,
held steady at 106.37 after making small gains overnight,
rising by about 0.5 percent this week,
reversing the trend of the past two weeks.
The Australian dollar was at $0.695 on Thursday,
rising by 0.15 percent after gaining 0.46 percent the day before,
trying to return above the symbolic level of $0.70
that fell earlier in the week after seemingly pessimistic statements from the central bank.
The euro also stabilized at $1.01635,
and the Japanese yen lost slightly to 134.06 yen per dollar.
In addition, gold futures rose 0.6 percent to $1786.80 per ounce,
while the euro/US dollar rose at 1.0165.