Oil futures fell by nearly one percent during the Asian session, to reflect its rebound to the second session from its highest since July 14, ignoring the resumption of the US dollar index from its top since the beginning of April for the sixth session in nine sessions, according to the inverse relationship between them on the cusp of developments The economic data expected today, Monday, by the US economy, the largest producer and consumer of oil in the world.
At exactly 05:39 am GMT, the NYMEX crude oil futures contract for next September delivery fell 0.98% to trade at levels of $73.19 a barrel, compared to the opening at $73.91 a barrel, knowing that the contracts started the session’s trading on a bearish price gap. After it concluded last week's trading at levels of $73.95 a barrel.
Also, Brent crude futures for October delivery fell 0.82% to trade at $74.57 a barrel, compared to the opening at $75.18 a barrel, knowing that the contracts also started trading on a bearish price gap after it concluded last week’s trading at $75.41 a barrel. While the US dollar index declined 0.04% to 92.08 compared to the opening at 92.11 levels, knowing that the index closed last week's trading at 92.17.
Investors are currently awaiting the disclosure of the final reading of the industrial purchasing managers index by Markit for the United States, which may confirm the expansion of the industrial sector of the second largest industrial country in the world at a value of 63.1, unchanged from what it was in the initial reading for the last month, compared to a value of 62.1 In the previous reading for the month of June.
This comes before we witness from the American economy the disclosure of the reading of the Institute of Industrial Supply Index, which may show an expansion to a value of 60.8 compared to 60.6 in June, while the reading of the same index measured in prices may indicate a decrease in the expansion to a value of 87.9 compared to 92.1, in conjunction With the release of the construction spending index, which shows an increase of 0.4%, compared to a decline of 0.3% last May.
On the other hand, we followed the report of the Japanese Kyodo News Agency, which reported that more provinces in Japan entered a state of emergency aimed at limiting the spread of the Corona virus, and this coincided with the Chinese government media stating that the Chinese government is at various levels in all Across the country, coronavirus containment measures have been taken following a resurgence of infections that were said to have started in Nanjing.
According to the latest figures issued by the World Health Organization, which were updated last Saturday at 04:30 pm GMT, the number of cases infected with the coronavirus has risen to more than 196.55 million infected cases, and about 4,200,412 people have died, while the number of vaccine doses given, according to another Update by WHO as of last Friday, 3.84 billion doses read.
We would like to point out, because the weekly report of Baker Hughes showed last Friday that drilling and oil drilling rigs operating in the United States decreased by two to 385 rigs, to reflect the first weekly decline in five weeks, ending its longest weekly gain streak since May after it reversed the highest level Since April 2020, it is reported that US oil production recently decreased by 200,000 barrels per day to 11.2 million barrels per day.
Thus, US oil production reflects a decline of 1.9 million barrels per day, or 17% from its all-time high of 13.1 million barrels per day in March 2020, as a result of the recent closure of some drilling and exploration platforms due to the widening gap between the cost of extraction and the selling price, especially after a pandemic. Corona, knowing that US oil production reached its lowest level last August at 9.7 million barrels per day, before witnessing a recent recovery.
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