European markets drop 1% as investors monitor virus, digest OPEC deal


CNBC 19 July, 2021 - 06:50am 29 views

Will OPEC deal increase oil prices?

OPEC Plus Agrees on Oil Production Increase, Easing Pressure on Supplies and Prices. ... Under the deal announced on Sunday, OPEC Plus, a group of 23 nations led by Saudi Arabia and including Russia, will increase output each month by 400,000 barrels a day, beginning in August. The New York TimesOPEC Plus Agrees on Oil Production Increase, Easing Pressure on Supplies and Prices

European stocks fell on Monday as investors react skittishly to rising cases of Covid-19 around the world, fueled by the highly-transmissible delta variant.

The pan-European Stoxx 600 slid 2.2% by early afternoon trade, with banks and energy stocks plunging 3.4% to lead losses as all sectors and major bourses slid deep into negative territory.

surge in Covid-19 cases across the continent caused by the highly transmissible delta variant continues to weigh, with several major European countries forced to reimplement social restrictions, while the U.K. lifted most remaining restrictions on Monday despite reporting a high number of daily cases.

Meanwhile, investors reacted to the news that OPEC and its allies (a group known as OPEC+) reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022. Coordinated increases in oil supply from the group will start in August, OPEC said in a statement.

The development comes after Brent has surged more than 40% so far in 2021, with demand for crude rising as the global economy recovers from the pandemic.

On Monday morning, international benchmark Brent crude futures plunged 3.34% to $71.12 per barrel. U.S. crude futures also declined 3.62% to $69.21 per barrel.

U.S. stock index futures tumbled in premarket trade on Monday, after the major averages posted their first negative week in four.

Inflation fears are also weighing on stocks after the Consumer Price Index in the U.S. last week showed that inflation jumped 5.4% in June year-over-year, spooking investors. Separately. a U.S. consumer sentiment index from the University of Michigan released on Friday showing that consumers believe prices will jump 4.8% over the next year. This is the steepest climb since August 2008.

Back in Europe, the devastation caused by massive flooding around Germany and Belgium could weigh on sentiment in the region this week, as well as ongoing coronavirus concerns.

In terms of individual share price movement, cruise operator Carnival plunged 7.8% to the bottom of the Stoxx 600, while Swedish industrial valve manufacturer Indutrade climbed 4.6% following a strong second-quarter earnings report.

Got a confidential news tip? We want to hear from you.

Sign up for free newsletters and get more CNBC delivered to your inbox

Get this delivered to your inbox, and more info about our products and services. 

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Read full article at CNBC

Summer oil price rally loses steam as traders see more supply on the horizon

Proactive Investors USA 19 July, 2021 - 07:00am

At the close of weekly trading, Brent crude was priced above US$73 with West Texas Intermediate (WTI) closer to US$72 a barrel

The great summer oil rally seemed to lose steam last week as the oil price declined but by the end of the week, OPEC and friends appeared to agree on a meeting to resolve differences with the UAE.

At the close of weekly trading, Brent crude was priced above US$73 with West Texas Intermediate (WTI) closer to US$72 a barrel.

The big news of the week was that the UAE had reached a compromise with Saudi Arabia on their baseline production figure.

Talks broke down at the earlier meeting this month when the UAE raised objections to their baseline and an extension of the agreement.

It appears all will be resolved with a compromise in coming days with reports that the UAE will be increasing its baseline to 3.65 million barrels from the current 3.17 million barrels.

With 400,000 new barrels expected from OPEC+ in the coming months, The CEO of C-Markit, Dr. Yousef Alshammari expects additional oil on the market by September, not in August, due to the stall of the OPEC agreement. 

Dr. Alshammari says we need to remember that any increase in UAE production needs to be ratified with all members, not just agreed on with Saudi Arabia.

He says his only concern is that this agreed increase by one member country might "open the doors for others other members to expand their production and that will have detrimental impact on balancing the markets".

In the meantime, negotiations will be going on between member countries so OPEC+ can present a united front at its next virtual meeting if this happens.

The oil price had its biggest fall in a few months as investors see more oil returning to the market soon.

Depending on who you talk to, this might not be such a bad thing.

In its monthly oil market report, OPEC reiterated its forecast for a recovery on global oil demand for the second half of the year.

Looking ahead to 2022, the organisation sees demand strengthening further with growth being led by China and India.

Demand is expected to hit 99.86 million barrels a day, an increase of 3.4% with expectations to hit more than 100 million barrels a day by the end of 2022.

The report said the organisation was encouraged by the acceleration of the vaccine programmes around the world that will improve oil demand and "spur consumption of oil next year to comparable pre-pandemic levels".

The International Energy Agency released a report on the electricity market this week saying that demand for electricity was on the increase by 5% this year.

It makes sense that a recovery from the pandemic will increase energy demand, but the report says that renewables might only serve "half of the projected growth in global demand in 2021 and 2022".

Fossil fuel electricity generation is meeting about 45% of demand, expected to fall to 40% in 2022 with coal still higher in this space than gas.

While demand for electricity from renewables continues to rise, the agency says the industry can’t keep up with this demand.

The big focus now will be on the upcoming OPEC meeting. This will deliver a sense of confidence and stability to the market as producers and investors can plan better and look ahead to the second half of the year.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

Yooma Wellness (CSE: YOOM) CEO Jordan Greenberg joined Steve Darling from Proactive to share news about the wellness company with a number of products including hemp seed oil and hemp-derived CBD ingredients. Jordan telling Proactive more about the company and some of their recent moves...

Only registered members can use this feature.

All Rights Reserved - Proactive North America Inc., Proactive Investors LLC.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use.

July 19 Summary of Xinhua World Economic News at 0900 GMT - Illinois News Today 19 July, 2021 - 05:09am

OPEC and its non-OPEC allies have also reached an agreement to phase out the reduction of 5.8 million barrels of oil per day by September 2022, “depending on market conditions.” (OPEC-Increased oil production)

Jerusalem-Chinese consumer electronics giant Midea Group opened its first store in Israel on Sunday, said Midea Group, the official Israeli importer of Midea.

The new flagship store covers an area of ​​350 square meters of a shopping mall in the heart of Rehofot and offers refrigerators, dishwashers, washing machines, vacuum cleaners and range hoods. (Israel-Aesthetics-First Store)

Kuala Lumpur-Monday’s Fitch Ratings confirmed Malaysia’s long-term foreign currency issuer default rating (IDR) on “BBB +” with a stable outlook.

Rating agencies said in a statement that Malaysia’s rating balances strong and broad medium-term growth and a sustainable current account surplus outlook with a highly diversified export base, with high public debt and low. Balanced with government revenue base, protracted political uncertainty. (Malaysia-Fitch Ratings)

Nairobi-Kenya Investment Agency (KenInvest) and China Council for the Promotion of International Trade (CCPIT) Shenzhen City Commission introduce China’s booming coastal city of Shenzhen through a photo exhibition entitled Visit, Trade and Investment Affiliated for.

The three-day exhibition, which ended on Monday at the University of Nairobi, presented some images of Shenzhen taken by Kenyans living in the city, giving the world a taste of the city through their eyes. (Kenya-China-Investment)

July 19 Summary of Xinhua World Economic News at 0900 GMT

Source link July 19 Summary of Xinhua World Economic News at 0900 GMT

OPINION: OPEC+ deal should end $100 a barrel crude oil predictions - ET EnergyWorld 18 July, 2021 - 10:49pm

SEBI, DRI probing Adani group companies for non-compliance of rules: Fin Min

Suzuki to enter EV market by 2025, starting with India: Nikkei

OPEC+ ministers agreed on Sunday to boost production by 400,000 barrels per day (bpd) from August to December, adding a total of 2 million bpd to global supply by the end of the year.

100000+ Industry Leaders read it everyday

The company had earlier re-opened sales on June 18 but was forced to put brakes on the process within two hours of the resumption due to heavy rush.

The Adani Power bid for the project has been approved by a committee of creditors. Now, it will have to seek the NCLT approval to acquire the project, which is undergoing insolvency proceedings.

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, Webinars etc.

Please contact us to know more details.

Get ETEnergyworld's top stories every morning in your email inbox.

100000+ Industry Leaders read it everyday

Follow @ETEnergyworld for the latest news, insider access to events and more.

WTI drops and pops in the open on OPEC news

FXStreet 18 July, 2021 - 05:19pm

Oil prices start out volatile with West Texas Intermediate (WTI) dropping and popping in the open following weekend news. 

WTI is currently trading flat again at $71.40, but it fell in the open to a low of $70.99 and printed a high of $71.55.

Oil is suffering on the back of expectations of growing supplies and a rise in coronavirus cases that could lead to lockdown restrictions and depressed demand.

''OPEC and its allies agreed to gradually add more oil supplies to the market from August (400,000 b/d monthly hikes until Sep 2022) after Saudi Arabia and the United Arab Emirates resolved a dispute that was blocking the deal.''

On Thursday, the group announced that global demand for oil is expected to increase next year to around levels seen before the pandemic, about 100 million bpd, led by demand growth in the United States, China and India. 

Additionally, from Friday, the US oil rig count continued its slow increase, gaining two rigs this week to 380 active units, their highest since April 2020, according to energy services firm Baker Hughes. US crude production has also increased by 300,000 barrels per day (bpd) over the last two weeks, rising to 11.4 million bpd in the week ended July 9, the highest since May 2020, according to federal data. 

Technically, the price is meeting a daily support at the lows and considering the M-formation, the price could be on the verge of an upward correction of 50% of the bearish impulse to test the prior lows of 73.20.

If the price fails to break the resistance, then it would be expected to lead to an onward downside continuation in the coming week:

The targetted area is between the 67.50s and 65.30s. 

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow up our daily analysts' guidance emphasizing the emotional side of trading. Subscribe Today!    

The EUR/USD pair finished the week just above the 1.1800 level, as the greenback retained its strength heading into the weekly close, despite mixed US data. The focus this week is on the European Central Bank monetary policy decision.

The GBP/USD pair edged lower at the end of the week, ending it in the red near July’s low at 1.3730. The UK reported over 54,000 new coronavirus contagions in one day. GBP/USD is technically bearish near a strong static support level at 1.3730.

Gold fell sharply on Friday but closed the week in the green. After closing the previous three weeks in the positive territory, gold stayed relatively quiet on Monday and Tuesday but managed to regain its traction on Wednesday.

Bitcoin price has been tightening as it consolidates in a slim range. The recent price action seems to have developed into a bullish pattern that hints at a potential impulsive move if BTC manages to slice through a critical resistance level. 

NYSE:GME dipped by 0.48% on Thursday, as the broader markets continued to show volatility. Netflix announces its entry into the videogame market. AMC outpaces the market as the meme stock bucks its recent trend.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Business Stories

Top Stores