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Lately, oil prices suffered a sharp loss on the sluggish demand, shrinking to $36.12 for a high above $43.0 and refreshing the three-month low.To get more news about WikiFX, you can visit wikifx official website.
  According to the latest figures, both API and EIA inventories have swelled with the latter up to 500.4 million barrels. In addition, the total oil rigs in the U.S. have decreased to 180 and the demand for crude oil has entered a phase of slowing growth, said Baker Hughes, a U.S. energy services firm.


  The monthly reports of OPEC and the IEA will be released today and tomorrow, respectively, while the oil market will keep eye on this Thursday's OPEC and non-OPEC Ministerial Meeting. Recent signals of adding output sent by Saudi Arabia and Russia have curbed further cuts in production. The meeting is expected to focus on member states' implementation of production cuts, which can hardly lift oil prices.
  According to the daily chart, oil prices are supported around $36.50 and may see a rebound in the short term, whereas the downtrend seems to be enduring in the medium and long term. A breach below $36.0 is waiting ahead if oil prices again achieve a rally but hampered by the resistance of $38.50-39.0.
  All the above is provided by WikiFX, a platform world-renowned for foreign exchange information. For details, please download the WikiFX App:
After the first oil shock in 1973 which shook the world economy, the attention of everyone turned to the oil prices. Changes in oil prices began to be followed closely, and its effects over macroeconomic variables started to be researched.To get more news about WikiFX, you can visit wikifx official website.
  Because the pricing of crude oil is made in American dollars internationally, changes in oil price directly affect the exchange rates of the countries. This point especially led the researches about the effects of oil price changes to focus on its effects over exchange rates.
  Policymakers, academics and journalists have frequently discussed the link between oil prices and exchange rates in recent years—particularly the idea that an appreciation of the US dollar triggers a dip in oil prices. Empirical research is not so clear on the direction of causation, as there is evidence for bi-directional causality. Some studies find that an increase in the real oil price actually results in a real appreciation of the US dollar, while others show that a nominal appreciation of the US dollar triggers decreases in the oil price. Figure 1 illustrates the link between the nominal West Texas Intermediate (WTI) crude oil price and the US effective dollar exchange rate index relative to its main 7 trading partners.


  The terms of trade channel mostly focus on real oil prices and exchange rates, while the wealth and portfolio channels propose an effect from the nominal exchange rate to the nominal oil price. The expectations channel allows for nominal causalities in both directions.
1. The impact of oil prices on exchange rates
  The terms of trade channel were introduced in 1998. The underlying idea is to link the price of oil to the price level which affects the real exchange rate. If the non-tradable sector of a country A is more energy intensive than the tradable one, the output price of this sector will increase relative to the output price of country B. This implies that the currency of country A experiences a real appreciation due to higher inflation. Effects on the nominal exchange rate arise if the price of tradable goods is no longer assumed to be fixed. In this case, inflation and nominal exchange rate dynamics are related via purchasing power parity (PPP). If the price of oil increases, we expect currencies of countries with large oil dependence in the tradable sector to depreciate due to higher inflation. The response of the real exchange rate then depends on how the nominal exchange rate changes, but relative to the impact of any changes in the price of tradable (and non-tradable) goods described above. Overall, causality embedded in the terms of trade channel potentially holds over different horizons depending on the adjustment of prices.
  The underlying idea of the portfolio and wealth channel is based on a three country framework. The basic idea is that oil-exporting countries experience a wealth transfer if the oil price rises. The wealth channel reflects the resulting short-run effect, while the portfolio channel assesses medium- and long-run impacts. When oil prices rise, wealth is transferred to oil-exporting countries (in US dollar terms) and is reflected as an improvement in exports and the current account balance in domestic currency terms. For this reason, we expect currencies of oil-exporting countries to appreciate and currencies of oil-importers to depreciate in effective terms after a rise in oil prices. There is also the possibility that the US dollar appreciates in the short-run because of the wealth effect - if oil-exporting countries reinvest their revenues in US dollar assets. The short and medium-run effects on the US dollar relative to currencies of oil-exporters will depend on two factors according to the portfolio effect. The first is the dependence of the United States on oil imports relative to the share of US exports to oil-producing countries. The second is oil exporters relative preferences for US dollar assets. Figure 3 summarizes the wealth and portfolio channels.
2. Common factors driving oil prices and exchange rates
  Having already explained the role of inflation, Figure 2 incorporates other common factors including GDP, interest rates, stock prices and uncertainty. A full analysis of all possible linkages and other potential factors is beyond the scope of this paper, but a few important channels are worth mentioning. GDP and interest rates both affect exchange rates and oil prices, and are also interrelated: Monetary policy reacts to GDP fluctuations while interest rate changes affect GDP through total investment and spending. An increase in GDP, all else equal, results in an increase in the oil price. Effects on exchange rates are less clear for both interest and exchange rates. A relative increase in domestic interest rates should for example depreciate the domestic currency according to uncovered interest rate parity, but the empirical evidence has demonstrated that an appreciation is frequently observed instead, reflecting the notorious forward premium puzzle. Another major influence on both the macroeconomic environment and exchange rate dynamics is the degree of uncertainty. A domestic appreciation of the exchange rate might result from uncertainty, if participants expect a currency to act as a safe haven.
  Under the theories explaining the relationship between oil price and exchange rate, we see the basic supply-demand relationship. When the price of oil increases, firstly demand for dollar will increase in oil importing countries leading dollar to appreciate, but then to buy the dollar their demand for their local currencies will increase leading appreciation of their local currencies, which causes the exchange rate to depreciate. Also after getting the payment, the supply of dollar will increase in oil-exporting countries leading dollar to depreciate which causes a decrease in exchange rate, but here there are two possible follow up situations. If the oil-exporting country increases their goods import because of the depreciation of dollar, demand for the dollar will increase in the country leading dollar to appreciate causing an increase in exchange rate. However, if the oil-exporting country can‘t/doesn’t increase their goods import, then exchange rate will remain in a decreasing trend because of the depreciation of dollar.
  Researchers built a theoretical dynamic partial-equilibrium portfolio model of an oil price increase influence on exchange rates in a world consisting three countries: United States of America, Germany and OPEC. According to this model, the short-run and the long-run effects of the oil price increase will be opposite such as an increase in oil price at first induces dollar appreciation but then it turns into dollar depreciation. The effect of an oil price increase on exchange rate depends on “the share of local currency in OPEC‘s portfolio”, “the share of country’s goods in OPEC imports”, and “the country‘s share in world oil imports” in this model. In the model oil imports are exogenously fixed so the effect of oil price increase will also be affected by the OPEC’s spending preferences of the money generated from oil sales. For instance; if OPEC prefers dollar payment but German goods, then the value of dollar will increase in the short-run, however will decrease in the long-run.
The British pound opened the week marginally higher across a range of currencies, with GBP/USD up above 1.2762. Moving forward, the pound is expected to witness steep volatility as the country's latest employment/unemployment figures and inflation data will be released this week and the Bank of England (BoE) Monetary Policy Committee meeting will be held on Thursday.To get more news about WikiFX, you can visit wikifx official website.
  The most important event of the week will take place in the House of Commons. On Monday, MPs began debating changes to the Withdrawal Agreement as the amendments have riled the EU and caused heated debate within the Conservative Party.
  The UK's employment/unemployment figures for July will be released at 14:00 today, while at the same time tomorrow the CPI for August will have come out. The data is expected to show price pressures easing, on which the BoE is likely to discuss at their meeting the next day.


  Bullish price action from the end of June was comprehensively broken last week and there is little support before the 200-DMA. With volatility picking-up over the last few weeks as well as the releases of previously mentioned events and data, the pound may stage a volatile performance this week.
  All the above is provided by WikiFX, a platform world-renowned for foreign exchange information. For details, please download the WikiFX App: bit.ly/WIKIFX
Although crude oil prices have recovered from their lowest levels since late April recorded during the crisis caused by the COVID-19 pandemic, business leaders and oil industry experts are questioning whether oil demand has really peaked or not.To get more news about WikiFX, you can visit wikifx official website.
  The outbreak and spread of COVID-19 caused oil prices to plummet, with futures prices dropping to a negative value for the first time in history. The demand for energy consumption fell sharply mainly due to governments‘ measures of lockdown and social distancing orders that restricted people to travel and put countries’ aviation industry into a battle to survive.
  The International Energy Agency (IEA) forecasts global oil demand will decrease by an average of 8 million barrels/day this year, or about 8% lower than last year. Although the IEA estimates oil demand will increase by 5.7 million barrels/day next year, overall demand will remain lower than in 2019 due to ongoing uncertainty in the aviation sector.
  This gloomy outlook has made many observers question whether market demand can return to 2019 levels? The concept of oil at its peak has long been the subject of discussion. Experts mainly focus on production peaks, with forecasts that oil prices will skyrocket when underground oil resources are exhausted.
  But in recent months, the concept of a demand peak has emerged, after the COVID-19 pandemic wiped out the fuel demand of the transport industry, plus those efforts to move to cleaner fuel sources. Environmental groups have been campaigning to stop the Paris Agreement on climate change from becoming another victim of the COVID-19 pandemic, said Professor Michael Bradshaw at the Warwick Business School (UK), at the same time emphasized the need for a Green New Deal in the economic recovery process.
  Professor Bradshaw argues that if environmental groups succeed, demand for “black gold” may never return to the highest levels ever recorded before the COVID-19 pandemic. Meanwhile, the transport sector may never fully recover, and after a pandemic, people may have different attitudes toward international air travel or work habits.
  According to IEA CEO Fatih Birol, many people including CEOs of several large companies think that with today's lifestyle changes, oil demand may have peaked and will begin to drop. Meanwhile, the oil industry may face financial challenges.


  Bronwen Tucker, an analyst at the non-governmental organization Oil Change International (OCI), said the oil industry is under great pressure from investors. “The giant” Royal Dutch Shell (UK-Netherlands) said last week that the asset value of this business has decreased by about 22 billion USD when reassessing the value of the business under the influence of COVID-19. Last month, Britain's BP also announced the net worth of the oil and gas conglomerate decreased by $ 17.5 billion. While China actively buys crude oil when it is so cheap and so that the tanker congestion has formed at sea.
  China is currently the world's second largest oil consumer after the US. As of June 29, the country has accumulated 73 million barrels of oil, which is stored in 59 ships floating at sea, according to data from ClipperData - the company tracks the movement of crude oil at sea in real time. This is equivalent to three-quarters of the world's demand.
  The recently landed oil was probably purchased in March and April, when oil prices plummeted due to the pandemic. WTI US crude oil dropped to negative on April 20 for the first time in history.
  China's floating oil storage - which includes barrels of oil waiting on board for seven days or more - has nearly quadrupled since the end of May, according to ClipperData. This is not only a record number since the beginning of 2015, but also 7 times higher than the monthly average in the first quarter of 2020.
  The storage of oil at sea shows that China is making a profit when the world energy market falls into a period of extreme crisis. “China is buying massive globally,” said Matt Smith, director of cargo strategy at ClipperData. “The number of oil at sea is growing rapidly.”
  Smith also said China's inland oil depots were not even filled yet. “This was simply due to an out-of-port congestion. So many tankers arrived that they couldn't bring it ashore in time,” he explained.
  The main buying power of China has partly pulled up the oil market. Just 7 weeks after falling to a negative of nearly $40, US crude oil rose again to $40 a barrel. The difference of 80 cent USD was created by the unprecedented reduction in production by OPEC and Russia, the world lockdown situation was loosened and demand from China increased sharply.
Most Architectural Firms prefer to outsource 3D Architectural Visualization to outside agencies, as they can present their projects in the best possible light. Sketches or 2D drawings are not accurate enough and also do not offer clarity to those who do not have a technical background. However, 3D images leave nothing to the imagination and give every detail of what the proposed project will look like when finished. With CGI, clients can envision projects that have not yet been built. It offers many advantages to architects, including smoother communication and streamlined workflows, which reduces time and expenditure on the project.To get more news about design rendering services, you can visit https://www.3drenderingltd.com official website.

When a project is still under construction, it can be hard to find visual materials for presenting to clients and stakeholders. Professional photoshoots can be done only after the project is finished, and if prospective customers want to see a portfolio before that, then 3D visualization is the way to go. Using CGI you can create a gallery of images that showcase your experience, client list, and innovative design solutions. Clients who are able to view this portfolio will understand the design capabilities of the architect and can get the required mutual understanding with the architect.

The same 3D images can be used as an effective marketing tool. Potential clients are more likely to buy into the project if they are able to get a clear understanding of the spaces. These images can be used in print, on banners, and on social media to advertise the project.
#1. Highlight the Strengths of your Project

3D rendered images show all the features of the design as they have been conceptualized, to the appropriate scale and with details of texture, finishes, material, and color. Potential customers will be able to thoroughly examine all details of the project, including spatial relationships between rooms and different floors, the position of door and window openings, arches and columns, treatment of facades, and so on.

The images can be created with or without the surroundings, as per your requirements. If the neighborhood is also shown, you can get a good idea of how the building harmonizes with its surroundings, and how the entire built environment will look. If the image is created on a blank background, then all the design features of the project can clearly be highlighted. This style of rendering is very professional and is ideal for presenting your project to clients and stakeholders to garner acceptance and approval.

#2. Showcase your Projects in the Context of the Surroundings

With the help of 3D Rendering for Architects, Architects can present the building in the context of the built environment. All the buildings around can be recreated in photorealistic quality, showing how the building sits within its surroundings. The roads around the building, landscaping, and parking can be shown to prospective clients to help them understand spatial flows much better.

#3. Get an Understanding of Exterior Lighting Possibilities

The exterior lighting forms a very important part of the design conceptualization and can make or break the aesthetics and functionality of the project. The perception of the building design depends a great deal on the colors used, temperature and brightness of light, angle of the light rays, shadows cast, different shapes of lighting fixtures, and their placement. The lighting of the garden and landscaping elements will add to the overall appearance of the project. Properly designed illumination of driveways, paths, and stairways is important for the safety of residents of the building.

2D drawings are not adequate to convey the right picture of how the lighting has been conceptualized. Rather than trying to describe a complex lighting system verbally, a picture is worth a thousand words. Clients and investors can easily understand the proposed placement and style of lights in and around the building. Photorealistic images can beautifully showcase the various styles of lighting, including tiny LED strips that add a glow around the ceiling, garden lights that highlight plants and trees, ceiling lights that provide ambient lighting and focus lights that can dramatically change the mood of an interior.