Negative stability of oil futures contracts

 

Negative stability of oil futures contracts

Oil futures contracts fluctuated in a narrow range tilted to the downside during the Asian session, amid the positive stability of the US dollar index near the top in nearly four months, according to the inverse relationship between them on the cusp of developments and economic data expected today, Friday, about the American economy, the largest producer and consumer of oil in the world, and in the shadows of Market pricing of the developments of the Corona pandemic, which may reflect negatively on global oil demand in the event of an exacerbation of the delta mutator outbreak, against expectations that demand will exceed supply for the remainder of this year.

 

At exactly 05:55 am GMT, the NYMEX crude oil futures contract for September delivery fell 0.08% to trade at $71.65 a barrel, compared to the opening at $71.71 a barrel, knowing that the contracts started the session’s trading on a bearish price gap. After it concluded yesterday's trading at levels of $71.91 a barrel.

 

Brent crude futures for September delivery also declined 0.04%, to trade at $73.53 a barrel, compared to the opening at $73.56 a barrel, knowing that the contracts also started trading on a bearish price gap after closing yesterday’s trading at $73.79 a barrel, with The US dollar index rose 0.07% to 92.87 compared to the opening at 92.81 levels, knowing that the index concluded yesterday's trading at 92.82.

 

Investors are currently awaiting the release of the preliminary reading of the Markit services and manufacturing PMI for the United States, which may explain the contraction in the expansion of the industrial sector of the second largest industrial country in the world to a peak of 62.0 compared to 62.6 in June and the stability of the expansion of the service sector, which represents two-thirds of the GDP The total for America reached 64.6 during July, after it was revised from 64.8 in June.

 

In contrast, we followed last Wednesday, the US Energy Information Administration’s report on oil inventories for the week that elapsed on July 16, showing a surplus of about 2.1 million barrels, compared to a deficit of about 7.9 million barrels, contrary to expectations that the deficit would shrink to about 4.6 million barrels. 439.7 million barrels, and stocks are 7% below the five-year average for this time of year.

 

The report of the US Energy Information Administration at the time also showed a decline in motor fuel stocks in the United States, the largest energy consumer in the world, by 0.1 million barrels, but stocks are at the average of the past five years for this time of year, and stocks of distillate derivatives decreased by 1.3 million barrels, to remain in stock. 4% below the five-year average for this time of year.

 

On the other hand, market fears about the situation of the Corona virus in the Asia-Pacific region still exist in one way or another, especially after the two largest states in Australia announced last Wednesday a sharp increase in new infections with the delta axis, while Indonesia recorded a record rise in deaths caused by it. Coronavirus, according to Reuters news agency.

 

In the same context, the Director-General of the World Health Organization, Tedros Adhanom, noted Wednesday that the world is in the first stage of another wave of infections and deaths from the Corona virus, explaining that the global failure to share vaccines, tests and treatments is fueling a two-track pandemic, countries that have sufficient resources such as vaccines are opening up, While some other countries are shutting down in an effort to slow the spread of the coronavirus.

 

Speaking at the time to the members of the International Olympic Committee in the Japanese capital, Tokyo, which is scheduled to launch the Olympics later today, with an audience in Japan, Adhanom said that the contradictions in vaccines around the world hide a terrible injustice, and that the epidemic is a test and the world fails, explaining that whenever The longer the epidemic, the greater the social and economic disruption it causes, adding that the global threat of the epidemic will remain until all countries deal with the disease.

 

Adhanom warned that after nineteen months of the outbreak of the Corona virus and seven months since the approval of the first vaccines, we are now in the first phase of another wave of infections and deaths, and it is reported that he expressed last week that the conditions related to the Corona pandemic are worsening, explaining at the time that the Delta mutated strain It may soon become the world's dominant version, putting much and the global recovery at increased risk.

 

According to the latest figures issued by the World Health Organization, which were updated yesterday, Wednesday at 06:02 pm GMT, the number of cases infected with coronavirus has increased to more than 191.77 million infected cases, and about 4,127,963 people have died, while the number of vaccine doses given, according to the latest Update by WHO as of last Tuesday, approximately 3,569 million doses.