Markets and oil continue to remain stable due to strong demand

The beginning of August 2022 has convinced investors and financial strategists that the market is going in the correct direction. There was a three-day winning streak on Wall Street. Most astute investors also examine the condition of major markets that are present in Europe, US and China. The economic data released from the US, Europe and China help them to plan further strategies. What is the condition of the demand? What is the status of inflationary pressure? All these important aspects have to be considered. The expert financial strategists claim that there are situations when the investors have to wait and watch the movement of the market.

There is a good sign that the demand is not slowing down, and it is helping the market to grow. The MSCI's gauge of stocks across the globe (.MIWD00000PUS) registered a gain of 0.06%. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose by 0.11%. Also, Japan's Nikkei (.N225) made a gain of 0.69%. The crude prices are affected by the demand outlook and also by the overall production. The market is concerned about the steps of OPEC and other oil producers. The Japanese Yen and Euro strengthened. The sterling rose by 0.73% and it was trading at $1.2255. Gold prices managed to edge higher and the spot gold rose by 0.4% and it was standing at $1,771.89 an ounce. The smart investors continuously look for economic data to get clues. They also watch the steps such as interest rate hikes.

Oil prices continue to remain strong

The world is watching towards the OPEC+ meeting. It is because the market is eager to know what will be the steps of this producer group. The situation will stabilize in a better way, if there is a boost in supply. Some countries have not mobilized their entire effort, and this has reduced oil production. The United States is concerned about oil production and supply. The US drillers have managed to add a record number of crude rigs that clearly indicates that more supplies are coming. According to recent research reports, Brent is likely to be at average $105.75 per barrel. The US crude is likely to be at $101.28.

The sources of OPEC are saying that the group is considering keeping the output at the same pace. However, there is also a possibility that there can be a discussion regarding modest increase in production. If there is a decision not to increase the output then, it is likely to disappoint Joe Biden who visited Saudi Arabia. It is being said that many oil producers are continuously struggling to meet the oil production quota. As the Russia-Ukraine war is not showing signs of any end, there is a severe shortage of gas in European countries. Many countries have slapped sanctions on Russia. So, Russia has also reduced gas supplies to other countries. This could even lead to insufficient winter stockpiles. Russia is the largest energy supplier to Europe. Hence, the strained relations are affecting the energy supplies. The energy markets have been affected after the Russian invasion of Ukraine.

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