Oil prices rose during early trading, today, Wednesday, near their highest levels in 3 years, supported by the recovery in demand, and the waning of expectations of a soon return to Iranian crude supplies.
And preliminary data from the American Petroleum Institute showed, yesterday evening, Tuesday, that crude stocks in the United States decreased by 8.5 million barrels over the past week ending on June 11. Read also Locally and abroad.. Learn about the investments of Moroccan companies in gold Industrial gold .. Britain initiates the attack in a global race for rare metals The recovery of the gold market in Kuwait .. Demand to buy despite the high prices Gold achieves the best week in 6 months after US data is below expectations
At 05:30 UTC, Brent crude futures prices for August delivery rose 0.81%, to $74.60 a barrel, the highest level since October 2018.
The prices of US West Texas Intermediate crude contracts, for July delivery, also increased by 0.70%, to reach $72.62 a barrel.
“Even non-energy traders are betting that oil prices will continue to rise,” said Edward Moya, chief market analyst at OANDA.
Moya added, “Everyone’s expectations are turning excessively to the rise in oil prices. The prospects for demand for crude are very strong, as with the recovery in America, Europe and Asia, demand will return to pre-Covid-19 levels in the second half of next year.”
Despite the passage of 6 rounds of Iranian talks with the great powers in the Austrian capital Vienna, and the possibility of the United States returning to the agreement after its withdrawal from it in May 2018, reaching an agreement soon is still unlikely.
This means that the return of Iranian oil supplies (3.86 million barrels per day in the normal situation) to the global market will remain postponed for a period later this year.
The dollar is stable
The dollar settled near a month-high against a basket of currencies on Wednesday, as investors tried to ascertain whether the US Federal Reserve would change its tone on stimulus after the recent jump in US inflation.
There was little change in the dollar index at 90.499, after hitting its highest level in one month on Tuesday, despite the mixed US economic data.
And US retail sales fell more than expected last May, while the April data was revised to record a sharp rise, and increased significantly from its level before the pandemic.
The data reinforced the belief in a strong recovery of the economy with the return of spending to services again from goods; Vaccination campaigns allowed Americans to travel and engage in other activities.
Separate data showed wholesale price inflation accelerated to 6.6%, the largest increase since November 2010.
The euro was stable at $1.2129, unchanged on the day, but struggled to recover from last week’s losses after the European Central Bank pledged to keep stimulus unchanged during the summer months.
The yen was little changed at 110.06 against the dollar, near the two-month low of 110,325 yen, which it touched last month, and the Bank of Japan is expected to extend some pandemic stimulus measures this week.
The British pound, the strong performer since the beginning of the year, hit a one-month low of $1.4035 yesterday, despite the stronger-than-expected employment data. And settled today in the latest trading at 1.40885 dollars.
The Australian dollar lacked momentum after the country’s central bank hinted on Tuesday that it wanted to extend its bond-buying program next month.
The currency was trading at $0.7697, not far from the 7-week low of $0.7646, which it touched earlier this month.
In the cryptocurrency markets, bitcoin was trading at about $40,295, after hitting a nearly one-month high of $41,341 on Tuesday, backed by a new investment pledge by Microstrategy, a major supporter of the currency, and a tweet. Optimistic of Tesla chief Elon Musk.