Today marks the end of a trading week with fluctuation in indices, metals and forex, but the biggest loser of the week has been oil. The black gold has continued its losing streak for the third consecutive day, reaching March 2021 levels.
According to Reuters, the main reason for this fall has been the expectations that more crude oil will reach the market after a possible OPEC+ agreement that would allow for an increase in production. The news agency also attributes the fall to the increase in oil demand reflected in the July 4 week, on which US Independence Day was celebrated. On that day, there was a lot of travel in the country. Bloomberg, meanwhile, blames the fall not only on OPEC+ tensions but also on rising coronavirus cases in some parts of the world.
At the time of writing, West Texas Intermediate (WTI) was down $1.48 selling at $71.65 a barrel. Brent crude futures were down $1.29 reaching $73.47 a barrel.
Treasury Bonds Fall Back
Federal Reserve Chairman Jerome Powell’s 2-day meeting with the Congress ended yesterday with no apparent change in the Fed’s direction regarding inflation data. However, traders weighed in on the inflation and further contagions risks on the economic, causing Treasuries to retreat. Ten-year Treasuries are poised for their third decline so far this week.
The Nasdaq was down 0.7% while the S&P 500 was down 0.3% on the same day the pharmaceutical company Moderna announced it was ready to join the index. The multinational biotech company has increased its stock value by 149% since it unveiled its vaccine against Covid-19.
US jobless claims data recorded a drop to 360,000 from 386,000. The import price index rose but manufacturing output continues to be hampered by supply chain disruptions, especially in the automotive sector. Industrial production rose 0.4% in June compared to May.
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