Crude Oil Futures Shoot Up Wednesday
ICM Brokers | Oct 02, 2014 03:21AM ET
Crude Oil
Crude futures shot up on Wednesday after data revealed a steep drop in U.S. inventories when markets were expecting a build, which offset concerns of a global supply glut. Crude gains on bullish U.S. inventory report oil rises as U.S. stockpiles take a surprising dip he U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories decreased by 1.4 million barrels in the week ended September 26, compared to expectations for a gain of 0.7 million barrels. Total U.S. crude oil inventories stood at 356.6 million barrels as of last week. The report also showed that total motor gasoline inventories decreased by 1.8 million barrels, compared to forecasts for a decline of 0.8 million barrels, while distillate stockpiles declined by 2.9 million barrels. Oil prices have taken a beating on fears global supply far exceeds demand, though Wednesday's data rekindled expectations for a more robust U.S. recovery to offset slumping European and Asian economies. Mixed data out of the U.S. contained enough positive nuggets to keep Tuesday's buying spree going.
GOLD
Gold futures rose on Wednesday on demand from safe-haven investors fleeing stocks on fears of disappointing earnings, while lackluster U.S. data cut into the dollar's recent advance and gave gold further room to rise. Gold gains on falling stock prices, soft U.S. data Gold gains on demand from investors seeking safe harbor ahead of U.S. earnings season. Earnings season is fast approaching and fears that soft European and Chinese economies may affect U.S. top lines sent stock prices falling on Wednesday, which boosted gold's appeal as a hedge to uncertainty. Weaker data in the U.S. boosted gold prices as well by chipping away at the dollar's recent advance. The Institute of Supply Management reported earlier that its manufacturing index fell to 56.6 in September from 59.0 in August. Economists had expected the index to decline less and come in at 58.5.
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