Oil futures fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound for the second session from the lowest since July 21, overlooking the rebound of the US dollar index for the fourth session in five sessions from the lowest since June 28, according to the inverse relationship Among them, on the cusp of developments and economic data expected today, Thursday, by the American economy, the largest producer and consumer of oil in the world.
At exactly 05:53 am GMT, the NYMEX crude oil futures contract for next September delivery rose 0.50% to trade at levels of $68.40 a barrel, compared to the opening at $68.06 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 $68.15 a barrel.
Brent crude futures for October delivery also rose 0.46% to trade at $70.57 a barrel, compared to the opening at $70.25 a barrel, knowing that the contracts also started trading on a bearish price gap after it concluded yesterday’s trading at $70.38 a barrel. With the US dollar index rising 0.03% to 92.30 compared to the opening at 92.27 levels.
Investors are currently awaiting by the US economy the release of the unemployment claims index for the past week with the end of July, which may reflect a decrease of 18 thousand applications to 382 thousand applications compared to 400 thousand applications in the previous weekly reading. On the 24th of last month, a decline of 9 thousand applications to 3.26 million applications, compared to 3,269 thousand applications.
This comes in conjunction with the release of the merchandise trade balance reading, which may explain the widening of the deficit to $74.2 billion compared to $71.2 billion last May, and before we witnessed the speech of Deputy Federal Reserve Governor and member of the Federal Open Market Committee Christopher Waller about currencies Central Bank of America at a webinar hosted by the American Enterprise Institute.
In contrast, we followed yesterday, the US Energy Information Administration’s report on oil inventories for the week that elapsed on July 30 showed a surplus of 3.6 million barrels, compared to a deficit of 4.1 million barrels, contrary to expectations that the deficit would shrink to 3.2 million barrels, to witness a decline in inventories to 439.2 million barrels, while stocks are still 6% below the five-year average for this time of year.
The US Energy Information Administration’s report on Wednesday also showed that motor fuel stocks fell in the United States, the largest energy consumer in the world, by 5.3 million barrels, making stocks 3% below the average of the past five years for this time of year, while stocks of distillate derivatives rose by 0.8 million barrels. Stocks are still 6% below the five-year average for this time of year.
On the other hand, we followed a short time ago, the South Korean news agency Yonhap News reported that the most stringent restrictions imposed in the greater Seoul area “are likely to be extended again” due to the continued rise in cases, and this came after the report that touched upon the fact that China faces a renewed danger in cities. from Beijing to Wuhan, and that Chinese authorities have imposed mass testing and extensive travel restrictions in some areas.
It is noteworthy that the Japanese Kyodo News Agency reported last Monday that more provinces in Japan entered a state of emergency aimed at limiting the spread of the Corona virus at the beginning of this week, and this coincided with the Chinese government media mentioning at the time that the Chinese government at various levels across the country Coronavirus containment measures have been taken following the resurgence of infections that are said to have started in Nanjing.
According to the latest figures issued by the World Health Organization, which were updated yesterday, Wednesday at 04:44 pm GMT, the number of cases infected with coronavirus has increased to nearly 199.47 million infected cases, and about 4,244,541 people have died, while the number of vaccine doses given, according to the latest update. By the organization until yesterday, more than 3,946 million doses.
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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