Oil prices fell to a minimum level during the last two weeks after an unexpected decline in U.S. consumer confidence index marred investor sentiment, triggering concerns that oil demand will begin to recover in the current year.
As a result of trades on Aug. 14, on the New York Mercantile Exchange the price of futures for WTI crude oil with delivery in September fell by $3.01 to $67.51 per barrel. On the InterContinental Exchange in London, the September contract for Brent Crude oil dropped price by $1.07 to $72.41 per barrel.
Several days of high optimism in world markets ended after the U.S. University of Michigan's consumer sentiment index was published. Unexpectedly for the analysts, forecasting growth of up to 69 pints, the rate fell from 66 points in July to 63.2 points. This reduction showed two main components of the index - current conditions and expectations.
Additional pressure on crude oil on the last trading day of the week was put by a decline on stock markets, also affecting the consumer confidence index. The index of blue chip Dow Jones Industrial Average fell by 0.82%, high-tech NASDAQ - 1.19 percent, Standard & Poor's 500 - 0.85 percent. In Europe, Britain's FTSE 100 decreased by 0.87 percent, French CAC-40 - 0.83 percent, German DAX - 1.70 percent.
Currency market
Last week the official rate of the manat against the US dollar, set by the National Bank of Azerbaijan, consolidated 0.0003 points or 0.03 percent. The average rate was established at 0. 0.80418 manats to 1 U.S. dollar.
Last week the maximum rate of the US dollar compared to manat was established on Aug. 10, 11 and 12 (0. 8043 manats to 1 U.S. dollar) and minimum on Aug. 13 and 14 (0.8040 manats to 1 U.S. dollar).
As a result of last week's exchange rate of the Azerbaijani manat to the U.S. dollar, established based on results from the Baku Inter-bank Currency Exchange (BICEX), dropped by 0.0007 points (0.07 percent). The average rate was fixed at 0.80382 to 1 U.S. dollar.
Deals concluded last week at BEST with transition to currency (T+0) comprised: On Aug. 10, $0.65 million with the average sustained rate of 0. 8034 manats to 1 U.S. dollar, Aug. 11 - no deals were concluded and the exchange rates remained at previous level - 0.8034 manats to 1 U.S. dollar, Aug. 12, $3.4 million with the average sustained rate of 0. 8041 manats to 1 U.S. dollar, on Aug. 13 and 14, no deals were concluded and the exchange rates remained at previous level - 0.8041 manats to 1 U.S dollar.
No deal was concluded with USD/AZN T+1, T+2 and SWAP_USD/AZN due to an absence of appeals by dealers. Appeals were not received on RUB/AZN and EUR/AZN (Ň+1, Ň+2).
Market of privatization shares
Last week the price of the privatization vouchers remained the same - 9 manats, and sale - 10 manats. Prices remain the same for several months, which is explained by reduction of rates of state property privatization, as the State Property Committee is currently undergoing structural transformation.The validity period of the vouchers will expire on Jan. 1 2010.