Oil prices return to the highs of 2014
Russian stocks are set to open a slight rise following the increase of 0.2-0.7% of futures on global equity indices and MSCI emerging markets. Against the decision of the President of the United States to withdraw from the nuclear deal with Iran and to impose sanctions against the last 180 days, the price of oil hovers near $78 a barrel, where the last time was in November 2014. At the same time, investors did not demonstrate a reduction in risk appetite. On the contrary, the American stock indexes rose by the end of trading on Wednesday in the range of 0.2-1%. The engine of the movement was the energy sector, growth was 1.8%.
So, players expect a decline in supply of Iranian oil to the world market, which pushes up oil prices and potentially increases future contracted revenues of oil companies. By the way, Iran produces of 3.7-3.8 million b/d and production ranks third in OPEC. The first is Saudi Arabia with production of 9.9 million b/d, the second Iraq 4,43 b/d.
Against this background, the yields on U.S. 10-year government bonds rose by 4 b.p. to 2.98% , and auctions on placement of new bond issues have passed with demand 2.5 times covers the proposal. Today held an auction of 30-year bonds that will be indicative of the market amid expectations of higher interest rates, the fed in June by 25bps.p. to 2%. The April auction was held with coverage ratios 2.4 times, in March was – of 2.38. We do not exclude that in connection with this factor the possible demand for dollar liquidity.