Oil futures prices rose due to decrease in US oil stocks
Crude oil prices rose in Asian trade on Wednesday after industry estimates show a decline in US crude stockpiles.
The American Petroleum Institute reported that US crude supplies fell 3.9 million barrels for the week ending June 24, according to sources. Data later on Wednesday a closer watch on crude and refined products to be released by the US Department of Energy.
On the New York Mercantile Exchange, WTI crude oil for August delivery rose 0.50% to $ 48.09 per barrel.
Overnight, US crude stopping losses for 3 days on Tuesday, amid a weakening dollar, as the threat of a strike by workers coming in Norway offset concerns of a potential recession across the euro area in the middle Brexit historic referendum last week.
US crude oil futures are still more than 60% of 13-year lows in mid-February at $ 26.05 per barrel.
Crude oil prices received a boost Tuesday from news from Norway where 7,500 workers in the oil and gas industry could go on strike on Saturday if a new labor deal is not reached this weekend.
The workers unions in Norway, one of the major crude producer in the euro area, hoping to complete the deal the new wage before midnight on July 1 last week, Reuters reported that 280 rig workers in Rowan Companies’ Viking and Gorilla rig and a number of oil fields the state-run pay increases of 0.5% in order to prevent potential attacks, according to the state-appointed mediator. Last month, the International Energy Agency (IEA) reported that Norway pumped nearly 2 million barrels per day, representing 2.1% of the total monthly output in the world.
Meanwhile, in the Scottish Parliament approved a vote to give the first minister Nicola Sturgeon with a mandate to begin discussions to protect the Scottish relations with the EU. Scottish voters support the campaign Bremain with a margin of 62-38%, raising concerns that the nation could seek re-voting in 2016 referendum to leave E.U. which if successful, bitter land dispute between took place between England and Scotland in the plot area around the oil fields in the North Sea.
Technically
Resistance: 48.2548.3348.62 High / Low: 50.52 / 45.72
Support: 47.84 47.55 47.31 Running Price: 48.06
Comment: For intraday trade today suggest Buy at 48.62; stop loss at 48.12; target at 49.60.
Yen strengthened following Japan’s policy on Brexit
The yen held strong on Wednesday in Asian trade as policy makers in Japan to prepare for a meeting set to discuss the economy respond Brexit in United Kingdom
USD / JPY is trading at 102.51. down 0.25%, while the AUD / USD was trading at 0.7393, up 0.11%. GBP / USD edged down 0.15% to 1.3326.
In Japan, retail sales for May fell 1.9% year-on-year, compared with a 1.6% fall seen. In Australia HIA new home sales figures for May is due to a decrease of 4.7% is expected.
The pound eased after Prime Minister U.K. David Cameron told European leaders that they have to offer U.K. more control over immigration at the end of the day where the offended politicians across Europe clashed over the meaning and consequences of last week Brexit people.
The pound eased after Prime Minister U.K. David Cameron told European leaders that they have to offer England more control over immigration, politicians across Europe clashed over the meaning and consequences of Brexit last week.
Overnight, the dollar pared losses against other major currencies on Tuesday, as upbeat US data release boosted optimism over the strength of the economy, providing support for the dollar.
The Conference Board said its consumer confidence index rose to 98.0 this month from a reading of 92.4 in May, whose figure was revised from a previously reported 92.6. Analysts had expected the index to increase to 93.3 in June.
The report comes after the first estimate of US third-quarter growth domestic product showed growth of 1.1%, revised up from an initial estimate of a 0.8% rise. Analysts had expected growth to remain at 1.0%.
However, real consumer spending for the first three months of this year was revised down to 1.5%, from the previous reading of 1.9%. Economists had forecast an upward revision to 2.0%
The global stock markets experienced a two-day win ever, as a wave of selling around $ 3milliar wiped from the market.
Rating agency Standard & Poor’s and Fitch Ratings both downgraded their credit for England on Monday and warned that further cuts are possible.
Technically
Resistance: 102.46 102.57 102.81 High / Low: 102.80 / 102.36
Support: Running 102.35 102.20 101.88 Price: 102.44
Comment: For intraday trade today suggest Buy 102.47; stop loss at 102.20; target at 102.80.
Wall Street Index Strengthening – Supported by improving US economic data
The S & P 500 jumped 1.78 percent to 2,036.09, rebounding from its lowest level since March. Dow Jones rose 269.48 points, or 1.57% to 17,409.72 level as well as the Nasdaq, up 97.42 points or 2.12% at 4,691.87.
The stock price of Citigroup Inc. and Bank of America Corp. rose at least 4.3 percent after dropping their worst two days in almost five years. Facebook Inc. and Microsoft Corp. rose more than 2 percent, led gains in the technology sector.
Strong economic data helped distract investors from the ongoing fallout over Brexit. A report Tuesday showed the US economy expanded more than previously forecast in the first quarter, while consumer confidence rose in June for the first time in three months, according to a report from the Conference Board, based in New York.
The Stoxx Europe 600 Index jumped 2.6 percent in the biggest two-day slump since 2008.
Italian banks including Mediobanca SpA is among the biggest gainers after the Italian authorities take measures of support to overcome the recent selloff. Barclays Plc rose after losing more than 30 percent in the past two sessions.
EU leaders gathered in Brussels on Tuesday for a two-day summit of the European Council to press U.K. to outline how to move forward after the referendum.
Japanese stocks rose after the Nikkei newspaper report said that the stimulus ¥ 2milliar proposal has been submitted to Prime Minister Shinzo Abe by a senior official in the party. The Nikkei 225 Stock Average rose 0.1 percent.
Most futures exchanges in Asia signaled gains for Wednesday, with a contract in Japan, Australia and South Korea’s benchmark rose at least 0.5 percent. But the futures market in Hong Kong, fell 0.3 percent in most recent trading.
Bloomberg commodity index rose 1.9 percent, the most since May 10 because of the price of West Texas Intermediate crude oil rebounded 3.3 percent to $ 47.85 per barrel. Zinc and nickel surged more than 4 percent in London, while copper gained 2.3 percent.
Gold fell the worst in nearly two years, sliding 1 percent to $ 1,311.79 per ounce. In the two previous days, the price jumped 5.4 percent, the most since 2009.
Technically
Resistance: 17353 17393 17 413 High / Low: 18029/17107
Support: 17258 17224 17 198 Running Price: 17 272
Comment: For intraday trade today suggest Buy at 17 377; stop loss 17 257; target at 17577.
