Oil quotations again exceeded $70 per barrel. The reason for the optimism amongst market participants was the macroeconomic data from the U.S., which became further evidence of economic recovery. As a result of trades on September 15, on the New York Mercantile Exchange the price of futures for WTI crude oil with delivery in October rose by $2.07 to $70.93 per barrel. On the InterContinental Exchange in London, the October contract for Brent Crude oil dropped in price by $0.09 to $67.35 per barrel. On September 22, the duration of the October contract expired. The November contract price rose $1.49, reaching $69.86 per barrel.
Bidding on Sept. 15 in the oil market was held largely on the backdrop of optimism about the prospects for the U.S. economy. A sharp change in investor sentiment occurred after the publication of a number of positive macroeconomic data. So, the report by the U.S. Department of Commerce pleased traders. According to data provided by the Department, the volume of retail sales in the country in August rose by 2.7 percent compared to previous month, significantly exceeding analysts' forecasts (+1.9 percent).
Significant growth was recorded with regards to business activity index in the manufacturing industry, calculated by the FRB of New York. In September the figure rose to 18.88 points compared to 12.08 points in August and 15 points expected by analysts. The growth of the indicator indicates that the manufacturing sector of New York is on the direct way to recovery. Meanwhile, optimism regarding the future prospects of the economy inherited to the oil market. Evidences of economic recovery increased hopes of the oil market participants for a resumption of growth in oil demand.
However, still this important market factor brings disappointment. On September 15, after the completion of the trading session, the data was published by the American Petroleum Institute (API) on oil reserves. According to this information, last week's oil reserves in the U.S. rose by 631,000 barrels, while the reserves of heavy distillates rose by 5.197 million barrels. Volume of gasoline in storage rose by 1.347 million barrels. The news weakened investor optimism, as a result of online trading, oil prices turned down and totaled $70.25 per barrel at 6:45 am Moscow time on Wednesday.
Unlike data provided by API, the next report of OPEC brought more optimistic news, in which the organization has revised forecasts of world oil demand. Estimation of 2010 increased by 150,000 barrels per day, and 2009 - by 140,000 barrels per day. Thus, according to forecasts of cartel, in 2009 the oil demand will amount to an average of 84.1 million barrels per day, in 2010 it will resume growth (+0.5 million barrels per day) and reach 84.6 million barrels per day.
Currency market
Last week the official rate of the manat against the US dollar, set by the Central Bank of Azerbaijan, consolidated 0.0002 points or 0.02 percent. The average rate was established at 0. 0.80334 manats to 1 U.S. dollar.
Last week the maximum rate of the US dollar compared to manat was established on Sept. 14 (0. 8035 manats to 1 U.S. dollar) and minimum on Sept. 17 (0.8032 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), consolidated by 0.0002 points (0.02 percent). The average rate was fixed at 0.80292 to 1 U.S. dollar.
Deals concluded last week at BEST with transition to currency (T+0) comprised: Sept. 14, $2.8 million with the average sustained rate of 0. 8031 manats to 1 U.S., Sept. 15, $4.098 million with the average sustained rate of 0. 8030 manats to 1 U.S., Sept. 16, $6.58 million with the average sustained rate of 0. 8029 manats to 1 U.S. dollar, on Sept. 17, $4.64 million with the average sustained rate of 0. 8027 manats to 1 U.S. dollar and on Sept. 18, $0.23 million with the average sustained rate of 0. 8029 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 vouchers
Last week the price of the privatization vouchers increased one manat and purchase was 9 manats, and sale - 10 manats.
The validity period of the vouchers will expire on Jan. 1 2010. So far, around 75 percent of vouchers has been derived, and another extension of their validity period remains uncertain.