Oil And Gold Analysis: WTI Trades Above $104
ICM Brokers | Apr 22, 2014 03:53AM ET
Crude Oil
West Texas Intermediate oil traded above $104 a barrel amid speculation that tension between Ukraine and Russia is sufficiently priced into the market. WTI was near the highest level of 2014 as deadly shootouts in eastern Ukraine during the weekend led to renewed calls in the U.S. for sanctions against Russia after a diplomatic accord showed little sign of easing unrest. President Barack Obama’s administration said on April 18 that it will postpone a ruling on the Keystone XL pipeline that would bring Canadian crude to the U.S. “The gun battles in eastern Ukraine and the announcement that a decision on Keystone pipeline will be delayed have been greeted by a deep yawn by the market,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “Prices have already risen to pretty lofty levels given the fundamentals. Uncertainty about the crisis in Ukraine should support prices and keep us from falling much.”
Gold
Hedge funds lowered bullish bets on gold for a fourth week, the longest streak this year. The net-long position contracted to the lowest since mid-February as speculators sold bullion on signs of accelerating U.S. economic growth. The investors more than doubled bets on lower prices in the past month while reducing wagers on a rally in six of the past seven weeks. Prices fell 7.6 percent since reaching a six-month high in March after tension in Ukraine eased and U.S. equities rallied to a record. The number of Americans filing for unemployment insurance payments held last week near the lowest level in almost seven years and retail sales in March increased. Bullion plunged 28 percent in 2013 as some investors lost their faith in the metal as a store of value. Gold trade around 1290.
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