Oil Market Volatility And A Stronger Dollar — Kazakhstan’s Week In Review

The oil market was volatile this week amid statements from the United States and China. Oil and condensate production in Kazakhstan remained below last year’s level for the first four months, while the dollar gained 13 tenge during the working week, Orda.kz reports.

Brent rose to $108 per barrel after starting the week at about $103.

WTI began the week at around $97, then stayed near $102. On Friday, prices fell sharply, with WTI returning to the range of $97–99 per barrel. This happened against the background of reports about agreements between the United States and China.

According to OilGasLook, which is based on BNS data, oil and condensate production exceeded 8.6 million tons in April. This is 3.9% more than in April last year. However, April’s growth did not offset the decline at the beginning of the year. In four months, Kazakhstan produced 28.3 million tons of oil and condensate, 13.8% less than in the same period last year.

Against this background, Halyk Finance analysts note that the oil sector is already putting pressure on the overall dynamics of the economy. Kazakhstan’s GDP grew by 3.6% in the first four months, while the mining sector fell by 7.3% year-on-year. Among the reasons were lower oil production and restrictions on CPC operations.

Precious and industrial metals also became cheaper. Gold fell by 1.9%, silver by 6.3% and copper by almost 4%.

The foreign exchange market was also unsettled this week. Since May 11, the dollar has risen from 461 to 474.6 tenge. The average selling rate at exchange offices across the country was about 471.1 tenge.

Original author: Alexander Zhdanov

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