The decline in oil prices has become a new factor of pressure on the commodity markets

2021-04-06 12:01:44
Machine translation
The decline in oil prices has become a new factor of pressure on the commodity markets

the price of oil on world markets fell sharply against the decision of OPEC+ to increase the production and the next wave of disease coronavirus in the United States and Europe, despite extensive vaccination.

 

OPEC+ meeting on 1 April agreed for 3 months to increase oil production by 1.15 million barrels/day. First, it has led to increase in prices by 3-4%, as traders expected a more significant production growth.

 

However, yesterday, may futures for U.S. crude oil fell by 5.1% to 58.28 $/barrel, while the June Brent crude – by 5% to 61,88 $/barrel.

 

On quotes also pushes the information about the possible weakening of the US sanctions against Iran at a meeting of the Commission on JCPOA, which can dramatically increase the supply of oil on the world market against the background of the slow recovery of demand.

 

the Increase in cases of Covid-19 in Europe, the USA, and especially in India, where the service was sick more than 100 thousand people, slows the recovery of the economies of countries and inhibits the growth of demand for oil and other commodities.

 

After Biden presented the investment plan of $ 2 trillion in social and transport industry in the US in addition to the previously adopted draft law on the allocation of 1.9 trillion $ to protect against coronavirus, the US stock markets continued growth and stock market indices have updated records. Yesterday, the Dow Jones, S&P 500 and the NASDAQ rose 1.1% and 1.7%, which indicates an increase in the difference between the value of the shares and the fair market assessments of companies and the formation of the next "bubble" in the stock market.

 

Futures on commodities used in the production of biofuels, such as corn, soybean and palm oil yesterday traded at the previous level or with a slight growth, but this week, the pressure on markets will increase due to the falling demand and oil prices.

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