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Tuesday’s Triple Top News

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Tuesday’s Triple Top News

Tuesday’s Triple Top News
July 05
16:00 2016

Brent is becoming cheaper due to the production growth in Nigeria

On Tuesday oil quotations are falling due to the information that the volume of oil production in Nigeria increased in June. The cost of Brent crude oil has fallen below $ 50 per barrel.
At the London Stock Exchange the price of futures contracts for Brent crude oil for September has fallen by $ 0.55 – to $ 49.55 per barrel to the end of the day.
The price of futures contract for WTI crude oil has fallen by $ 0.82 – to $ 48.17 per barrel on electronic trading at the New York Mercantile Exchange by that time.

The production of “black gold” in Nigeria has increased by 90 thousand barrels in June. It amounted to 1.53 million barrels, according to the data from the Bloomberg agency. Nigeria managed to successfully increase the production due to the fact that the infrastructure that had suffered from the gunmen’s attacks was restored. Also, last Friday the oilfield services company Baker Hughes made a statement that the number of oil wells operating in the US had grown by 11 – to 341 the previous week.
The analyst of the commodity market in NH Investment & Securities Yu Jin Kang said: “The growth of the production in Nigeria and restoration of the wells operating in the United States mark the end of the supply disruptions that have been the main driver of the growth of oil prices in recent years. In addition, lower than expected demand for gasoline in the US also puts additional pressure on the market.

The Pound has fallen

The exchange rate of the United Kingdom currency has fallen during the trading to its lowest figure for 31 years – to $ 1.3114, according to Bloomberg.

In relation to the euro value the British currency has fallen to its lowest level since October 2013 – € 1,1484. The Financial Times publication noted that by 5 July the pound had lost 12.7% of the value before the referendum on the withdrawal of the United Kingdom from the European Union, when the rate was $ 1.50.

Investors leave all assets that may be considered risky because of the revived concern about the consequences that the UK withdrawal from the EU membership can cause.

The Bloomberg agency gives the explanation: the value of the British pound against the US dollar falls because of these new fears of investors about Brexit.

The international rating agency S & P Global Ratings lowered long-term EU’s rating in the foreign currency from «AA +» «AA» on 30June. The S & P gave the explanation – after the decision of the UK citizens to leave the EU on the results of the referendum, which was held on June 23, S & P revised its “opinion on the solidarity within the EU, which we now consider to be a neutral rating factor but not a positive one.”

The MICEX and RTSs have fallen at the Russian stock market

On Tuesday the Russian stock market opened with the “blue chips” falling in price because of the deteriorating external environment and cheap oil. For the first minute of the trading session MICEX and RTS indexes has fallen by 0.2-0.3%.

To the beginning of the day the MICEX index was equal to 1903.11 points, the RTS index – 937.63 points; the cost of most «blue chips» in rubles declined within one percent at the Moscow Stock Exchange.

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