A Massive Swing in the Oil Market and Asian Shares

The oil market was at its peak in the month of July 2021. However, in September 2021, oil stormed ahead of its July peak. The reason is very obvious. Global disruptions are literally forcing energy companies to take out a large volume of crude oil out of their inventories. Already, there is a huge shortage of natural gas in Europe. This factor is also pushing the cost of the gas. Brent managed to add 98 cents and touched $79.07 a barrel. Very similarly, the US crude also managed to add 97 cents and touched $74.95 a barrel.

The market experts are anticipating that in the coming days this pattern will continue. The analysts at Goldman Sachs also admitted that the year-end Brent forecast is likely to touch the figure of $90/bbl. The ongoing oil supply-demand deficit is much larger than the expectation of the forecast. Despite some doubts and minor fluctuations, the recovery in global demand is impressive. A growth of 0.5% was registered in MSCI's broadest index of Asia-Pacific shares outside Japan. For three consecutive weeks, the results were not impressive. Japan's Nikkei managed to gain 0.4% as the hopes mounted on fiscal stimulus. The transfer of power also has its own effect on the economy. The Nasdaq futures made a gain of 0.4%. Also, the S&P 500 futures rose by 0.5%.

The Asian giant China is taking all steps to stabilize its economy. Recently, the country's central bank began pumping more money in the financial system. Such steps strengthened Chinese blue chips. They managed to make a gain of 1.1%. According to the analysts of JPMorgan, the policymakers in China are likely to permit the deleveraging of property sector debt. The analysts are confident that the policymakers will succeed in effectively limiting the financial spillovers through effective restructuring. The eyes of the investors will also be focused on US fiscal policy. The fate of the $1 trillion infrastructure bill will be decided. The investors are also keeping an eye on the move of the US central bank. The condition of the US dollar was strong. It was firmly standing at 93.249, slightly below August's figure of 93.734. The condition of the Japanese currency Yen is also stable. Very similarly, the Euro was also stable at $1.1719. Many investors reconsider their decisions and make final moves according to the political scenario. The shift of political power has its effect on the economy. The precious metal gold was standing at $1,759 per ounce. When the US dollar is very firm, the effect is visible on the price of gold.

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