Oil futures were preparing for a strong recovery in the session, despite rumors that Nigeria and Libya could be capping their productions, which boost confidence that the global supply growth could grow if the nations mentioned above are restrained.
Both countries are member of the OPEC but is currently exempted from the production cuts by 2%. The exemption was done in order to allow their production to rise from an all time low because of the political unrest between the countries’ governments and local insurgent that blunted out their oil output.
On the New York Mercantile Exchange, Crude futures for August was recently up by 16 cents, an equal to a 0.4% climb and was sold at $44.56 per barrel in the Globex electronic session. While September Brent Crude futures was also up by 0.4% to end the market at $47.06.
Shares in the east were found in higher positions in the session, as investors are awaiting the Federal Reserve chair Janet yellen’s testimony to the Congress.Japan’s Nikkei 225 index gained 0.4 percent to end of the session at 20,156.64 boosted by the expectations that the yen will further against the dollar. Hong Kong’s Hang Seng was up by 1.1 percent to 25,773.10 while the Kospi from South Korea was also up by 0.2 percent to end the session 2,387.96 while Australia’s S&P ASX 200 edged higher by 0.1 percent higher ending the session at 5,728.60.