Oil price pushes the stock market higher
Russian stock market moves up to the target. Oil prices rose on Wednesday after reports of dwindling reserves in the United States. Growth also contributed to the producing countries of OPEC, which continue to adhere to plans to reduce supply despite pressure from Donald trump. Futures for WTI was $55,99 per barrel, which is 49 cents or 0.9% above the last calculation. Brent crude was at $65,65 per barrel, up 44 cents or 0.7% more compared to the last closing.
Crude oil inventories in America fell by 4.2 million barrels for the week. The oil market received support this year due to supply constraints from OPEC. However, oil stockpiles are adequate, as production in the US rose to a record 12 million barrels per day. Also demand growth is low due to the global economic downturn and energy efficiency improvements in different sectors.
In this regard, the shares of oil companies will be the main driver of growth of stock indices of the Russian Federation. “Gazprom” can rise to +1.2%, and Tatneft (Pref.) – by +0,8%, LUKOIL – on +1,3%, “Tatneft” and “Bashneft” can add +0.7% and +0.9%, respectively.
All three us US stock indices closed below the previous day. Losses in the sectors of basic materials, oil and gas and healthcare have led to a decline in stock. At the close of the NYSE, the Dow Jones Industrial Average fell 0.13%, the S&P 500 index slipped 0.08% and the NASDAQ Composite declined by 0.07%. Investors closely follow the news around the US and China. So, yesterday, the Commerce Department said it will open a new anti-dumping probe to determine at what price, sold structural steel from Canada, China, and Mexico. The investigation was initiated after the administration of the tramp called to cancel the tariffs of the national security of the United States on imports of steel and aluminum – we will remind, according to the deal signed in 2018, the North American free trade agreement was revised.
Mentioned the steel used in the construction of offices and residential buildings, arenas, Convention centers, Parking lots and ports. New anti-dumping and countervailing investigation based on the petition, which was filed with the American trading group, specializing in the production of steel. The Department is considering whether to do duty in the amount of about 30% for Canada and Mexico and 222% for China in response to import prices below the market.
The final decision will be known at the end of September. In 2017, the import of finished structural steel was estimated at $658,3 million (Canada), $841,7 million (China) and $406,6 million (Mexico). Previously we learn about the investigation from the international trade Commission until March 21. Earlier in February the canadian group the steel industry said it will oppose the petition calling to impose anti-dumping duty on some types of imported steel. Canadian Institute of steel construction said that the approval of the United States of damage to their producers is unfounded.
“International financial center”