Oil prices are continuing to fluctuate around their two-month minimum due to woes of a slow in the growth of the global economy and a fall in global oil demand. The prices spent yesterday in a $45.9-47.1 range and this morning during the Asian session they are in a $46.1-46.5 range. The relatively balanced market situation could change this evening when the API oil report comes out.
Yesterday’s rally across the stock markets was continued this morning in Asia. The Nikkei 225 rose by 2.8%. The ASX Australia was up 0.5%. The Shanghai Composite increased 0.3%, and the Hang Seng was up by 0.6%. Futures for the S&P500 were trading at 2131; close to the closing level of the previous trading day. If you haven’t already read, the DJI index reached historical maximums yesterday and the S&P500 updated them.
In the first half of 2016, 8.52 million tonnes of oil was supplied to China from Russia via the Russia-China oil pipeline, with the overall amount transported reaching 86.51 million tonnes. Russia is an important oil supplier for China. For many years China has imported oil from Russia for the most part via rail; however this type of transportation is seen as risky and expensive. The pipeline was commissioned in 2011, opening a new chapter in supplying oil from Russia to the tune of a near thousand kilometre long pipeline.
The USD was trading slightly down against the yuan at 6.6908 (-0.0052 or -0.08%).
Yesterday the EURUSD restored to 1.1055 by the end of the day after a fall to 1.1015. The pair continued its restoral to 1.1080 this morning. Of today’s important news for the Forex market it’s worth highlighting the Bank of England’s inflation report and The Bank’s governor Carney who is to speak.