Global oil prices continued to fall on Wednesday, but stock prices rose on the US and European stock exchanges as markets reviewed the minutes of the US Federal Reserve’s (FRS) meeting.
The June meeting of the FRS acknowledged that inflation in the US had exceeded forecasts and the FRS must be prepared to slow down with a bond-buying program. The FRS did not hint at a change in its policy.
The U.S. economy is “recovering faster than participants expected,” but not yet making enough progress “to justify a policy change,” said Chris Lough, an analyst at FHN Financial.
Oil prices continued to fall following the failure of negotiations between the Organization of the Petroleum Exporting Countries and its allies (OPEC +). OPEC + had considered proposing to increase production by 400,000 barrels per day each month from August to December, but no agreement was reached due to objections from the United Arab Emirates (UAE).
“Investors have realized that there will be a lot of uncertainty about OPEC’s volume policy in the coming months, and there is little risk that the whole deal could collapse, potentially leading to a new price war,” said Favad Razakzada, an analyst at ThinkMarkets.com.
If the UAE rejects the so-called OPEC + agreement, more oil could enter markets than expected and oil prices would continue to fall.
The Dow Jones Industrial Average rose 0.3% to 34,681.79 points on Wednesday, the Standard & Poor’s 500 rose 0.3% to 4,358.13 points and the Nasdaq Composite index rose less than 0.1% to 14,665.06 points.
The London Stock Exchange index FTSE 100 rose 0.7% to 7151.02 points on Wednesday, the Frankfurt stock exchange index DAX 30 rose 1.2% to 15,692.71 points, and the Paris stock exchange index CAC 40 rose 0.3% to 6527 , 72 points.
In the New York Stock Exchange e-commerce, the price of WTI crude fell by 1.6% on Wednesday to USD 72.20 per barrel. The price of Brent crude fell 1.5% to $ 73.43 a barrel on the London Stock Exchange.
The euro fell against the US dollar from 1.1824 to 1.1797 dollars per euro on Wednesday, the British pound against the US dollar rose from 1.3800 to 1.3802 dollars per pound, while the US dollar remained unchanged at 110 against the Japanese yen. 63 yen per dollar. The euro depreciated against the British pound from 85.67 to 85.44 pence per euro.
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