The concern is again expressed in the oil market and a loss of 1% at the beginning of the week’s sessions
The concern is again expressed in the oil market and a loss of 1% at the beginning of the week’s sessions:
Oil fluctuates again today, losing over 1% of its value with the number of infections of the Covid-19 delta variant continues to increase.
Evest follows the updates in the commodity trading markets and relays them to you in the following lines.
Oil declines as concerns increase over delta variant
Oil prices declined by more than 1% on Monday,
as market morale was again affected by fears of lower demand after seeing an increase
in the number of new coronavirus infections in several countries, in addition to the widespread flooding in China.
Tension in oil markets has been heightened by information over the weekend that some countries have seen a record daily increase
in the number of new infections, which has prolonged original actions against the pandemic.
If the situation continues to evolve in this direction, it could mean lower oil demand in the near future.
China, the world’s largest oil importer, has also recently seen an increase in the number of new coronavirus infections.
In addition, the country in the eastern part was hit by cyclones and heavy flooding.
The price of the Brent North Sea oil mix with the September future was the US $73.30 per barrel by 9.00 a.m.
Central European Time. Compared to the previous session, this is a decrease of 80 cents (1.08%).
US West Texas Intermediate Light Crude was $71.25 per barrel.
Compared to the previous session, this is a decrease of 82 cents, or (1.14%).
Brent crude
Last Friday, Brent crude rose $0.31 (+ 0.42%) to $74.1 per barrel.
While West Texas Intermediate crude rose by $0.16 (+ 0.22%) to $72.07 per barrel.
Brent crude futures rose by 0.69% last week and West Texas Intermediate crude – by 0.71%.
The panic over the rapid spread of the delta strain of coronavirus ended by the middle of last week,
with traders saying the acceleration of vaccines reduces the likelihood of new restrictive measures.
But fears have rebounded today, especially as the number of the new variant infections has increased.
The panic over the “delta” variant of the coronavirus and its effects on the demand recovery,
an initial impression made by the middle of last week.
However, it is not so much that they cannot influence oil prices.
Some experts believe that fears of falling demand are too early, and if not today, oil prices will continue to rise tomorrow.
They support these claims by maintaining sustainable basics and continuing vaccinations.
Fears are growing that the new type of coronavirus (Covid-19) infection, which has increased again in many countries,
will negatively affect the recovery of the world economy, and that increased oil demand has been affecting lower prices.
In many countries, new measures and restrictions have been announced
to prevent the increase in the number of cases caused by the delta variant,
the most contagious type of Covid-19, while the variant in question is said to be particularly
prevalent in areas where vaccination is disrupted.
The Chief Health Adviser
The Chief Health Adviser to U.S. President Joe Biden
and the Director of the U.S. National Institute of Allergy and Infectious Diseases,
Dr. Shark Anthony Fosse, in his assessment of CNN yesterday,
shared information that those who refuse vaccination are leading the country into an “unnecessary predicament,”
and stressed the need to wear masks again with the increase in cases and to issue vaccines to reinforce them.
He stressed that the immune system is being actively evaluated in some departments.
On the other hand, experts point out that the decision of the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC + group,
which consists of some non-OPEC oil-producing countries, to increase oil production by 400 thousand barrels as of August,
coinciding with the period when the increase in the number of Covid-19 cases worldwide may have helped to shrink the market.
A mixed session for major exchanges in Asia and the Pacific
Tokyo Stock Exchange (+ 1.04%) was the only positive place on the continent’s stock exchanges.
While other Asian exchanges have had some decline today.
Shanghai and Hong Kong Stock Exchanges declined sharply by 2.8% and 3.52%, respectively.
In Chinese markets, sales have been triggered by investor fears that the Beijing government would
clamp down on companies that have posted the highest growth in recent years, starting with the private education sector.
The mood was also different because of a new turn on the part of Beijing against the technology sector,
where Chinese internet giant Tencent was suspended for anti-competitive practices in music rights.
Negative references also came from Taiwan (0.96%), Seoul (0.91%), Mumbai (0.05%) and Singapore (0.68%).
The Sydney Stock Exchange maintained its trading unchanged.
Europe and Wall Street
On the other hand, futures in Europe and Wall Street are positive two days after the Fed’s decision on interest rates and monetary policy in the United States.
Managers’ trust in Japan’s manufacturing sector is in line with estimates Germany is expected to have economic confidence today,
while the Dallas Fed Manufacturing Index and Services PMI are coming from the US, as well as the Tesla quarterly report.
The Tokyo Stock Exchange remained closed last Thursday and Friday,
owing to two consecutive public holidays in Japan coinciding with the opening of the Olympics.
An analyst commented to AFP: “Investors repurchased securities encouraged by gains on Wall Street.
Everyone welcomed the initiation of the Olympic Games series.
“Uncertainty regarding the Olympics has been a negative factor for the Tokyo market, but the concern is waning,” he added.
On Monday, Olympic organizers counted a total of 140 cases of Covid- 19 since July 1st out of tens of thousands of people participating in the Olympics,
coming from Japan or abroad (athletes, administrators,
support staff, media representatives, etc.), Which is a very low rate.
The concern is again expressed