Crude oil futures fluctuated in a narrow range that tends to decline, to witness the rebound of the Nymex contracts for the second session in three sessions from the highest since February 20, and the rebound of Brent contracts for the second session in three sessions from its high since the 24th of the same month, ignoring the rebound of the index The US dollar for the sixth session in eight sessions, from its lowest since March 27, 2018, according to the inverse relationship between them on the cusp of developments and economic data expected today, Thursday, by the US economy, the largest producer and consumer of oil in the world.
At 06:18 am GMT, the futures contract for crude oil “NEMEX” for delivery next February decreased by 0.62% to trade at levels of $ 53.47 a barrel compared to the opening at $ 52.80 a barrel, knowing that the contracts started the session on a price gap. Bullishness, after closing yesterday’s trading at $ 53.57 a barrel.
Also, futures contracts for Brent crude prices for next March delivery fell 0.43% to trade at $ 56.17 a barrel compared to the opening at $ 56.41 a barrel, knowing that the contracts started trading on a declining price gap after it concluded yesterday’s trading at $ 56.42 a barrel, with that. The dollar index rose 0.06% to 90.30, compared to the opening at 90.25, knowing that the index ended yesterday’s trading at 90.24 levels.
Investors are awaiting the American economy to unveil the retail sales index, which represents about half of consumer spending, which accounts for more than two-thirds of the United States’ GDP, and which may reflect stability at zero levels against a decline of 1.1% in November, while it may appear. The core reading of the same index narrowed the decline to 0.1%, from 0.9% in November.
This comes in conjunction with the disclosure of inflation data with the release of the PPI reading, which is a preliminary indicator of inflationary pressures, which may show an acceleration of growth to 0.4% compared to 0.1% in November, while the core reading of the index itself may indicate that growth has stabilized at 0.1% during In December, the annual reading of the index may reflect the stability of growth at 0.8% and the core annual reading may show slowing growth to 1.3% versus 1.4%.
This also comes in conjunction with the disclosure of the industrial sector data for the largest industrial country in the world with the release of the New York industrial index reading, which may reflect an expansion to a value of 5.7 compared to 4.9 in last December, before we witness the release of the industrial production index, which may reflect an acceleration Growth to 0.5% compared to 0.4% in November, in conjunction with the energy utilization rate index reading showed an increase to 73.4% against 73.3%.
Up to the disclosure of the preliminary reading of the University of Michigan Consumer Confidence Index, which may show a contraction of the expansion to a value of 79.5 compared to 80.7 in December, in conjunction with the release of the final reading of the wholesale stocks index, which may indicate a slowdown in growth to 0.5% compared to 0.7% in October. Last October, otherwise, yesterday we followed up on Fed Governor Jerome Powell’s assertion that a rate hike is “not soon”.
In another context, we followed a short while ago, the US President-elect Joe Biden, who is expected to take over the affairs of the White House on the 20th of this month to succeed US President Donald Trump, revealed his incentive plan, “the American bailout”, to face the repercussions of the Corona pandemic of $ 1.9 trillion, He explained that his plan is divided into two phases for recovery, the first phase providing assistance to those who need it most and the second investment in workers and infrastructure.
Otherwise, we followed last Wednesday, the US Energy Information Administration’s report on oil inventories for the week that passed on the eighth of January showed that the deficit narrowed to about 3.2 million barrels, in line with expectations, compared to a deficit of about 8.0 million barrels in the previous weekly reading, to witness the decline of stocks to 482.2 million Barrels, while inventories are still 8% higher than the average of the past five years for such time of year.
As indicated by the US Energy Information Administration report yesterday, Wednesday, stocks of motor fuel in the United States, the largest global energy consumer, rose by 4.4 million barrels, so stocks are 1% higher than the average of the past five years for this time of year, while stocks of distillate derivatives, which include heating fuel, have declined. 4.8 million barrels, but stocks are still 9% of the average for the past five years for this time of year.
On the other hand, we followed yesterday the Organization of Petroleum Exporting Countries (OPEC) disclosure of its monthly report, in which OPEC kept its expectations of global oil demand growth by about 5.9 million barrels per day to 95.9 million barrels per day during the current year 2021, amid the organization’s expectations that oil-producing countries will pump From outside OPEC, 63.5 million barrels per day this year, and referring to the fact that demand declined in 2020 by about 9.8 million barrels per day to 90 million barrels per day.
This came hours after the Secretary-General of the Organization of Petroleum Exporting Countries Muhammad Barkindo, last Wednesday, praised the role of the Kingdom of Saudi Arabia, the third largest oil producer in the world and the largest producer in OPEC and the largest oil exporter in the world and OPEC, in preserving oil markets, explaining that the Kingdom’s intention to voluntarily reduce its production, which will reach one One million barrels per day during February and March next year, will help balance the market with the seasonal decline in demand during the first quarter.
According to the latest weekly report of Baker Hughes, which was issued last Friday, the drilling and exploration rigs for oil operating in the United States rose by 8 to a total of 275 platforms, reflecting the succession of the rally rallies that stopped seven weeks ago for the first time nine weeks at that time before the resumption of the altitude marches, We would like to point out that the oil drilling and exploration platforms operating in America have decreased by 431 since March 13th.