Oil And Gold Analysis: Crude Gains On Upbeat Inventory Report
ICM Brokers | Jul 24, 2014 02:52AM ET
Crude Oil
Crude futures rose on Wednesday after data revealed that oil stockpiles in the U.S. fell more than expected last week. Crude gains on upbeat U.S. inventory report Oil prices gain on U.S. stockpile data, geopolitical concerns The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 4.0 million barrels in the week ended July 18, well beyond expectations for a decline of 2.8 million barrels. Total U.S. crude oil inventories stood at 371.1 million barrels as of last week. The report also showed that total motor gasoline inventories increased by 3.4 million barrels, above forecasts for a gain of 1.3 million barrels, while distillate stockpiles rose by 1.6 million barrels, below expectations for an increase of 2.1 million barrels. That boosted oil prices by fueling sentiments that demand is on the rise even in an economy that is awash in crude.
Gold
Gold prices slipped in U.S. trading on Wednesday as upbeat U.S. data and earnings sent investors flocking to stock markets and out of safe-haven positions in the yellow metal. Gold falls as stocks rise on U.S. data, earnings Gold dips on rising stock markets, though geopolitical concerns support Upbeat data released in the U.S. on Tuesday and a slew of better-than-expected earnings enticed investors out of gold and into equities on Wednesday. The Labor Department reported Tuesday that the U.S. consumer price index rose 2.1% in June, unchanged from the previous month and in line with forecasts. On a month-over-month basis, U.S. consumer prices were up 0.3% after a 0.4% increase in May, also in line with expectations. June's core inflation rate, which excludes food and energy costs, rose by just 0.1% from May and 1.9% on year, slightly below market calls for 0.2% and 2.0% readings, respectively, which illustrated how gasoline was driving the headline CPI up, though markets viewed the numbers as fundamentally healthy anyway.
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