International oil prices rise on EU sanctions and easing of Chinese lockdown… Brent crude at $120 intraday

Chinese stock market consumer stocks, renminbi strengthened

(Seoul = Yonhap News) Reporter Koo Jeong-mo = International oil prices hit a record high in the past two months due to news of the easing of COVID-19 lockdown measures in major Chinese cities and the European Union’s move to impose sanctions on Russian oil.

In addition, as the reins of the ‘zero corona’ policy, which suppressed the Chinese economy and financial markets, eased somewhat, consumption-related items and the yuan in the Chinese stock market also strengthened.

According to Reuters on the 30th, the July futures price of Brent crude rose to $120.50 a barrel at one point during the day.

The price of West Texas Intermediate (WTI) futures rose 0.7% to $115.85 per barrel on the same day.

International oil prices have risen as interest is focused on whether the EU will agree to a ban on Russian oil imports, Reuters said.

The EU will discuss a sixth Russia sanctions plan for two days starting today. The key to the sanctions is a ban on imports of Russian crude oil.

An official from Kotak Securities said, “If the EU bans oil, there is room for an additional increase in oil prices, but if the sanctions are weak or exceptions are included, there will be no significant impact.”

According to Bloomberg News, the monthly increase in international oil prices is nearing the end of an upward trend for the sixth straight month, and is expected to set the longest record in the past decade.

The easing of lockdown measures in major Chinese cities also contributed to the rise in oil prices, he said.

The city of Shanghai announced that it would revise the quarantine guidelines and return to work control guidelines from the 1st of next month and abolish the ‘unfair restrictions’ for business resumption and production.

Beijing is also easing quarantine measures, such as resuming public transportation services in areas where the infection situation has stabilized recently or allowing office workers to work normally.

As a result, the yuan and Chinese consumer stocks also strengthened.

The Chinese yuan rose 0.8% on the same day.

On the Chinese stock market, Qingdao Beer and Chongqing Beer each rose more than 7%. Compared to the large-cap index, the CSI300 index, which rose 1%, this is a pretty good performance.

In the Hong Kong stock market, Chinese sportswear brand Li Ning rose more than 9%, and China’s representative restaurant chain Heidi Lao also rose 8%.

Marvin Chen, an analyst at Bloomberg Intelligence, a research institute affiliated with Bloomberg, said, “The spread of COVID-19 and the lockdown were the main factors that suppressed the valuation of the Chinese stock market.

He added that China’s more stimulus measures and the reopening of economic activity could help the stock market begin to recover in the second half of the year.

Shanghai under coronavirus lockdown

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