EconomyVN - At the close on New York Exchange, US light sweet crude oil for September delivery rose to $43.49.
World oil prices yesterday (11th of August) rose more than 4%, after Saudi Arabia's energy minister left open the possibility that this oil-producing country can implement moves to rebalance globally the "black gold" market.
At the close on New York Exchange, US light sweet crude for September delivery rose to $43.49. On London Exchange, Brent oil rose to $ 46.04.
Earlier, Energy Minister Khalid al-Falih of Saudi Arabia stated that during the meeting of the Organization of Petroleum Exporting Countries (OPEC) expected to take place in September, the country can negotiate "any appropriate actions".
The experts supposed that most likely the future move of Saudi Arabia can completely reverse the current data on crude oil output.
On Tuesday, crude oil prices dared to rebound further during Asia trade from overnight dips as market participants took advantage of steep drops on global oversupply.
In New York, September delivery crude futures soared 0.35%, being worth $40.20 per barrel. Market participants are looking ahead to estimates of American crude as well as refined product stockpiles close to the end of the previous week from the American Petroleum Institute late on Tuesday. These figures are followed by more Wednesday’s closey-watched data from the American Department of Energy.
In London, on the ICE Futures Exchange, October delivery Brent crude futures earned 0.57%, trading at $42.38 a barrel.
Overnight, crude prices rebounded towards April minimums during Monday’s North American trade, thus reapproaching bear market territory as signals of surging production in America and soaring output among members of the OPEC countries weighed.
Gold stays at 3-week peak
Gold prices were still at their three-week peaks during European trade as market participants waited for new indications regarding the timing of a probable US interest rate hike this year.
December delivery gold futures sagged 0.03%, trading at $1,359.20 per troy ounce, just below a three-week high of $1,362.00 achieved last Friday. Yesterday, gold gained about 0.15%.
Market participants looked ahead to major US data later Tuesday in order estimate the overlal health of the world's greatest economy and whether it’s sturdy enough to warrant a rate lift later this year.
The Commerce Department is going to issue its June’s core personal consumption expenditure index along with personal income and spending for this month too.
The U.S. dollar index, gauging the greenback’s power against a trade-weighted basket of six key counterparts, slumped 0.2% being worth 95.56.
The greenback has been under great pressure during recent trading sessions amid waning hopes that the Fed will increase interest rates soon.
On Monday, crude prices reversed their early revenues and eased a bit during Asia trade, with the normal weekly data sets in the USA on stockpiles ahead and market participants looking for any demand cues from the Def as well as Bank of Japan this week amid a struggling global economy.
In New York, crude oil for September delivery slumped 0.11%, hitting $44.14 per barrel. Meanwhile, in London, September delivery Brent crude futures dropped 0.11%, being worth $46.06 per barrel.
The previous week, crude futures concluded Friday’s trading session at the lowest value for almost three months, as worries over global oversupply intensified after data showed that the American oil rig count surged for the fourth week in a row the previous week.
Baker Hughes, oilfield services provider informed late Friday that the previous week the overall number of rigs drilling for oil in America soared by 14 to 371, the fourth straight weekly soar and the seventh rise for eight weeks.
EconomyVN News (internet)
According to CNN Money, British pound was devalued 14% against US dollar and 11% against Euro since British voters chose to leave the European Union (EU).
On Tuesday 23/6, the day of the referendum, 1 pound exchanged for $1.5. Currently, only 1 pound exchanged for less than $1.29, the lowest rate in 31 years.
British pound plunge led global investors "restlessness". However, this is good news for those who plan to stay in the UK this summer.
Room prices at 5 star hotel in London's Langham is 300 pounds per night. Brexit, this price is equivalent to 450 USD, now only equivalent to 378 USD - indeed is a lot cheaper.
Buckingham Palace, where Queen Elizabeth II lives in most of the time every year, is open for tourists to visit during the summer. Two tickets to visit Buckingham Palace, the palace reception room, royal carriages and the art collection of the Queen cost 74 pounds.
With the current exchange rate, this equates $95.4. Two weeks ago visitors had to pay 111 USD.
Walking on the streets of London feels comfortable, but when the weather is rainy, the visitors will have to get a taxi. The price of a round trip on the classic black taxis of London costs about 20 pounds, equivalent to $25.8 now, compared to $30 dollars on Friday 23/6.
How about theater tickets? Two tickets for the show "Kinky Boots", one of the most attractive shows in London today, cost 206 USD, 34 USD cheaper than was before Brexit.
And of course restaurant prices in London are also a lot "softer".
A dinner with wine for two people at the senior British style restaurant called Berners Tavern in Fitzrovia post-Brexit with $150. Now, thanks to Brexit, the price of the meal is only 129 USD.
Thus, the depreciation of British pound Brexit has helped travelers for saving a total of 138 USD in 5 categories of expenses mentioned above. This amount is sufficient for afternoon tea party at Ritz luxurious hotel in London.
In Wednesday's trading session, oil prices rose along with stock market, many commodities and other currencies, according to the Wall Street Journal.
On New York market, light sweet crude WTI futures in August, 2016 rose 83 cents or 1.8% to $47.43/barrel. On London market in the same period Brent prices rose 84 cents or 1.8% to $48.80/barrel.
According to WSJ's analysis, since British vote for leaving the European Union (EU), the oil price usually fell amid investors sold strongly stocks and commodities to buy these assets considered as safe such as gold, US dollar.
However, when this trend has changed, oil prices rose along with the stock market and other commodity prices, this happened during Wednesday session.
The stock market rose because new signs showed that the US economy is growing well. Institute for Supply Management (ISM) announced index of non-manufacturing sector in June, 2016 increased to the highest level since November, 2015. S&P 500 rallied immediately after that news.
During yesterday's session, dollar and gold rose, but gains has slowed as trading time gradually ended. Chairman of Excel Futures fund, Mark Waggoner said in Wednesday he did not receive more orders to buy gold but they get a lot of orders to buy other goods, which suggests that investors' demand for gold temporarily cooled.
"According to my forecast, the impact of Brexit coming to an end, the market will pay more attention to other factors in near future," said Mark Waggoner.
Market sentiment is also more stable, British pound after falling to 31 year low has increased slightly, US dollar depreciated. USD index fell 0.2% on Wednesday.
Bank of England (BoA) announced officially to decrease the compulsory reserve rate to encourage banks to extend credit for UK businesses.
Experts forecast US crude stocks fell 2.3 million barrels last week, though still down but this rate is lower than the decline of 3.4 million barrels in the same period last year.
According to the US Energy Information Administration (EIA), compared with the same period, average of oil production in the US fell from April until now. The average reduction is 800 thousand barrels/day. This is considered as a possible factor supporting oil prices.
According to Mr. Fadel Gheit, senior analyst at Oppenheimer & Co funds, one other supporting factor is that level of 40-50 USD/barrel is not enough to encourage energy companies to boost production again, this possibility can only occur when oil prices stabilized above $50/barrel. Therefore, oil prices would have to rise above $ 50/barrel, then could decline as companies take advantage of expanding production.