NYMEX crude oil prices rose
Crude oil futures prices rose in Asian trade on Wednesday, industry data showed a decline in US crude stocks, which supports British sentiment ahead of the vote will remain or leave the EU.
The American Petroleum Institute reported that US crude supplies fell 5.2 million barrels for the week ending June 17, according to sources.
On Monday, intelligence data provider Genscape, Inc. reported a draw of 568 213 in Cushing oil hub in Oklahoma for the week ended on June 17. Separately, a government report Wednesday from the US Energy Information Administration (EIA) could indicate a national draw 1.9 million barrels during the week.
On the New York Mercantile Exchange, WTI crude oil for August delivery rose 1.04% to $ 50.37 per barrel. Overnight, US crude oil futures halted a three-day winning streak on Tuesday, amid a broadly stronger dollar, as worries Brexit stay focused.
On the Intercontinental Exchange (ICE), Brent North Sea crude for August delivery wavered between $ 49.48 and $ 50.69 per barrel, before settling at $ 50.55, down 0.10 or 0.20% on the day.
In recent months, a number of major oil companies have expressed concern at the consequences striking that may result due to the departure of the British from the European Union. While creating the potential for increased trade barriers between the United Kingdom and key partners in the euro zone, voting out of Europe could also complicate the free travel arrangements with British workers employed by foreign oil companies.
Elsewhere, oil traders are also watching the conflicting reports from Nigeria on a 30-day ceasefire in the south Delta. Officials of the Niger Delta Avengers (NDA), a militant group that claimed responsibility for a series of attacks on oil infrastructure in the region.
Despite the huge rally over the past five months, the price of crude oil is still down more than 50% from the peak of $ 115 per barrel.
Technically
Resistance: 50.15 50.55 50.74 High / Low: 49.95 / 48.71
Support: 49.97 49.59 49.19 Running Price: 50.15
Comment: For intraday trade today suggest Sell at 49.95; stop loss at 50.60; target at 49.25.
Pound approached the highest price
GBP / USD fell from near six-month high, due to public opinion polls are closely watched in the United Kingdom showed that the sentiment for the campaign out of Europe has been gaining momentum ahead of the referendum Brexit Thursday.
Currency pair traded between 1.4617 and 1.4781 before settling at 1.4655, down 0.0019 or 0.31% on the session. In-session highs, the British pound reached its highest level against the dollar since the beginning of January, before finally retreat in trading this morning.
In Brussels, European Central Bank President Mario Draghi underlined the potential risks of Brexit and said the Board had a contingency plan in place if the voting results for the UK out of the EU. Draghi’s comments from Janet Yellen preceded testimony before Capitol Hill, where the chair of the Federal Reserve’s said the UK from the European Union could create increased volatility in financial markets across the euro area. Pressed further by legislators, Yellen later testified that Brexit may lead to a “risk-off” environment in the US market could create a surge in the dollar and weigh on exports.
Moreover, Yellen told the US Senate Banking Committee on Tuesday that the Federal Open Market Committee not hesitate to raise interest rates in the foreseeable future amid continued uncertainty in the global economy and the outlook for subdued inflation. Citing the slow development of economic and finance in China and the euro area, and little productivity growth, Yellen said the Fed expects interest rates remain below their long-term prospects.
Elsewhere, billionaire investor George Soros warned that the pound could fall as much as 20% against the US dollar if the U.K. leaving the European bloc. In 1992, Soros bet correctly against the Pound while sterling fell 15%, after the U.K. opt out of the EU’s Exchange Rate Mechanism (ERM). On Tuesday, Soros warned that the potential Brexit could have more serious implications than the event, the event is often referred to as “Black Wednesday.”
Technically
Resistance: 1.4696 1.4733 1.4755 High / Low: 1.4780 / 1.4615
Support: 1.4655 1.4626 1.4619 Running Price: 1.4671
Comment: For intraday trade today suggest Buy at 1.4700; stop loss at 1.4660; targets at 1.4750.
Wall Street gradually improved
Stocks closed slightly higher at the end of the last trading after the statement Fed president Janet Yellen ahead of the June 23 referendum on the UK about the certainty of its membership in the European Union.
Ahead of the referendum June 23, US Federal Reserve Chairman Janet Yellen gave a speech two days before the US Congress with a session scheduled for Tuesday morning before the Senate Banking Committee and then on Wednesday today.
In his speech, Yellen expressed cautious approach to monetary policy remains in accordance with the plan and while the pace of improvement in the labor market is slowing down, it is important not to overreact to one or two reports of labor. He added that the British voting to leave the EU could have a significant economic impact. He noted while the pressure on inflation as a result of Brexit.
Analysts do not expect a big change in the market after the Fed meeting last week to discuss monetary policy.
Technology sector is the one that rose in the S & P 500, helped by gains of 3 percent in the stock Micron Technology. Microsoft shares also traded more than 2 percent higher. Outperformed the index, gaining about 0.3 percent.
The Dow Jones Industrial Average rose 24.86 points, or 0.14 percent, to 17 829, with the highest increase in Microsoft shares and shares of Boeing’s largest dehumidifiers.
The S & P 500 rose 5.65 points, or 0.27 percent, to 2,088.90, with the energy sector leading the six sectors higher and the largest remaining materials sector.
The Nasdaq index rose 6.55 points, or 0.14 percent, to 4,843.76.
EU referendum will be held on Thursday. Analysts predicted in a note on Tuesday they still see the possibility of 40 percent of Brexit. “A referendum will not diminish political fragmentation, with anti-immigration, anti-establishment, contributing to the risk of Vox Populi, especially but not exclusively in Europe,” they said.
The US dollar index held about half a percent higher recorded on the last trading yesterday, the euro near $ 1.125 and the yen close to ¥ 104.
The pound struggled to gain against the dollar traded near $ 1.462. Earlier, sterling hit its highest against the dollar since January 4 and jumped more than 2 percent on Monday for the best since late 2008.
Technically
Resistance: 17775 17798 17811 High / Low: 17811/17705
Support: 17713 17696 17 655 Running Price: 17729
Comment: For intraday trade today suggest Buy at t 17 710 stop loss at 17 660; target at 17 780.
