The market completed the week with decline. Despite the positive macroeconomic data from the United States, the oil prices lost more than dollar compared to the previous day, being affected by the strengthening U.S. currency.
As a result of trades on Aug. 7, on the New York Mercantile Exchange the price of futures for WTI crude oil with delivery in September fell by $1.01 to $70.93 per barrel. On the InterContinental Exchange in London, the September contract for Brent Crude oil dropped price by $1.24 to $73.59 per barrel.
Starting of the Friday trading session on the oil market was accompanied with a rapid growth, which was caused by the data on the labor market in the United States. According to the country's Department of Labor, in July the number of non-agricultural employment decreased by 247,000 people, which is considerably less than analysts' expectations (-325,000). The reductions were also lower than observed in the past 11 months. The unemployment rate in the United States also dropped - up to 9.4 percent compared to 9.5percent previously.
Improvement on employment indicators is another testimony that the United States economy is beginning to unfold in the direction of growth, leaving the recession behind. Due to it, the oil prices reached $72.84 per barrel, maximum intraday level since June 30 this year.
However, analysts note the potential dual impact of the data on the oil market. On the one hand, reduction in the number of those losing work is well for fundamental market indicators, since more people retain purchasing capacity. On the other hand, due to the improving situation in the United States, investors may start to consider Europe as a down market that will result in the sale of the Euro and the consequent strengthening of the US dollar. The growth of the U.S. currency reduces the attractiveness of oil as an alternative investment.
Meanwhile, not too much credibility of the last macroeconomic factors for the participants of the oil market became apparent after the USD started to move upwards compared to Euro and the yen. On Friday, the U.S. currency rose 1.2 percent to 1.4175 USD/Euro compared to 1.4345 USD/Euro a day earlier. Due to it, crude oil lost its earlier gains and continued to fall, completing the day in a relatively deep red.
Currency market
The official rate of manat per U.S. dollar, fixed by the Azerbaijani Central Bank, decreased by 0.01 percent last week. Average rate was fixed to the amount of 0. 80416 manat to $1 last week.
The maximum dollar rate to manat was fixed on August 3, 4 and 7 to the amount of 0.8042 manat to $1 but the minimum rate was fixed on August 5-6 to the amount of 0.8041 to $1.
As a result of a week, exchange rate of manat to the U.S. dollar fixed as a result of auctions on the Baku Inter-bank Currency Exchange was fixed to the amount of 0,04 percent. Average rate was fixed to the amount of 0.80362 manat to $1.
BEST deals were concluded with currency the same day (T+0) during a week: on August 3 - $0.11 million with rate of 0.8037 manat to $1, August 4 - $0.1 million with rate of 0.8038 manat to $1, there were no deals on August 5. So, exchange rate preserved to the amount of 0.8038 manat to $1, on August 6 - $3.9 million with rate of 0.8034 manat to $1 and on August 7 0 $2.45 million with rate of 0.8034 manat to $1.
There were no deals on USD/AZN T+1 and T+2 due to lack of dealers' demand. There were no banks' bids on RUB/AZN and EUR/AZN in BEST.
Market of privatization shares
Prices for privatization cheques preserved at the same level, purchase - 9 manat but sale - 10 manat. Price-dropping is explained by reduction of state property privatization rates.
Maintaining of prices for privatization cheques within recent months is explained by fall in the rate of state property privatization. It is stipulated by structural changes in the State Property Committee.
Term of privatization cheques expires on January 1, 2010.