Paris: The clear drop in oil was at the center of attentions on Monday in the markets, while London and the main Asian stock markets are closed for a holiday, the organization of oil exporters and its allies (OPEC+) having announced to accelerate their black gold production in June, despite the overabundance of the offer. Eight OPEC+ member countries out of twenty-two said on Saturday that they would come out of the ground 411,000 barrels per day in June, is as much as in May, while the initial reintroduction plan provided only 137,000 barrels additional.
Around 9:30 am, a barrel of WTI WTI The West Texas Intermediate (WTI), also called Texas light Sweet, is a variation of crude oil acting as standard in the fixing of crude price and as a raw material for oil contracts with the Nymex (New York Mercantile Exchange), the bursa specializing in energy. American yielded 3,02% has 56,53 dollarswhen that of Brent BRENT Brent or crude northern sea, is a variation of crude oil acting as a reference in Europe, listed on the intercontinentalelexchange (ICE), a stock market specialized in energy trading. It has become the first international standard for setting oil prices. from the North Sea lost 2,76% has 59,60 dollars.
“OPEC+ official communication indicates that the group puts barrels on the market because+ the fundamentals are healthy and stocks are low+“, notes Ipek Ozkardeskaya, analyst of Swissquote Bank.
“However, global growth forecasts collapsed due to the relentless trade war between the United States and the rest of the world, and the increase in production only aggravates the problems of suburban supply“Explains Ms. Ozkardeskaya.
“Last week, Saudi Arabia had already suggested that something important was about to happen by declaring that it was ready to tolerate a drop in oil prices for an extended period. The news of the weekend was therefore not a shock, but the reasons for this decision remain uncertain“She continued.
Economists are trying to assess the impact of the pronounced decline in the price of black gold on the markets, while the London Stock Exchange is closed on Monday due to a public holiday, just like the main Asian stock markets.
“With a drop in oil prices of more than 20% Since the start of the yearenergy prices have become an important disinflationist factor, even if inflation remains greater than the objective“central banks”in most savings“Developed, note the economists of Deutsche Bank.
“This week, attention should turn to central banks again, with the latest decisions of the American Federal Reserve (Fed) on Wednesday and the Bank of England Thursday“, they commented.
Since December, the rates of the powerful Fed have been located in a range between 4,25% et 4,50% And the market expects the institution to leave its rates unchanged in May.
“The forecasts of the monetary institution for the month of June“However, will be scrutinized, judges the analyst of Swissquote Bank.
The monetary policy decisions of central banks in Norway and Sweden will also be expected.
“These events arise as the markets have partially rid of the stress of recent weeks caused by Trump customs rights thanks to the hope of a de -escalation and the good American employment figures on Friday“Continued economists from Deutsche Bank.
European stock market indices take advantage of a light calendar on Monday morning to catch their breath after the earnings of the previous week.
Around 9:30 am, the star index of the Frankfurt Stock Exchange, the Dax, won 0,25% While the CAC 40 in Paris ceded 0,40%.
On the currency market, the single currency was granted 0,21% Faced with the greenback, at 1.1321 euros for a dollar.
Upward
The drop in oil prices benefits “to companies in the logistics and air transport sector“comments Andreas Lipkow, independent analyst.
At the European side, Ryanair offered himself 5,68%Air France-KLM took 2,91%Lufthansa 1,98%Dassault Aviation 1,29%.
“Furthermore, Speculations circulate on a possible interest of Shell for its competitor BP“, Both sides in London, noted Mr. Lipkow.
(C) AFP
Commenter Oil falls after OPEC+ announcements
Community barrel price
