The European markets are performing impressively and stock futures managed to edge higher. However, smart investors are monitoring the situation in China and Italy as well. It is important for the investors to monitor the growth data of the world's second largest economy (China) and the political situation of a major European economy (Italy). The DAX futures contract in Germany managed to rise by 0.1% and the CAC 40 futures in France made a gain of 0.1%. Interestingly, the FTSE 100 futures contract in the UK also climbed by 0.2%. The investors are also monitoring the steps of the US Federal Reserve. The consumer inflation rate and interest rate are also key factors to consider.
The conscious investors monitor the political situation in other countries because a change in the government can convince them to re-adjust their investment strategies. Luckily, European and American economies are completely stable. As economic and industrial activities in most of the countries are working in full swing. Sometimes the investors and other financial strategists are concerned about inflation and supply chain issues, but overall the situation is stable. The Swedish bank Handelsbanken (ST:SHBa) also reported a profit in its second quarter. The oil prices edged higher, and the ongoing geopolitical factors should be held responsible.
The US President Joe Biden is trying to convince his Gulf allies to produce more oil, and it will bring down the cost. However, it is a big challenge as the spare capacity of OPEC members is running low and cannot be mobilized. The US crude futures managed to rise by 0.4% higher. It was trading at $96.16 a barrel. The Brent contract also managed to climb 0.7%. It was standing at $99.76. The gold futures rose up to $1,706.00/oz. The West Texas Intermediate crude climbed 2.5% or $2.38. It was standing at $98.16.
Oil demand is likely to grow by the next year
There was a US-Arab summit, but according to Saudi Arabia's foreign minister, there was no discussion about oil production. OPEC will analyze the market conditions and take necessary actions. The world is concerned about its food and energy needs due to the ongoing Russia-Ukraine war. By accelerating the oil production, it is possible to bring down the price and control other problems such as inflation. Hence, world leaders including Joe Biden are taking necessary steps. The USA expects Saudi Arabia and its OPEC partners to produce more oil. If OPEC manages to boost its output, then it is possible to tame the crude prices. Russia is also included in the OPEC+ and the next meeting is scheduled on 3rd August.
The United States wants to ensure that OPEC will raise its production in the coming months. It will give a signal to the market that the situation is normal because supplies will come when necessary. The investors are also watching the development of the Russia-Ukraine war.
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