Oil And Gold: September 05, 2014
ICM Brokers | Sep 05, 2014 02:47AM ET
Crude Oil
Oil prices came off session lows but stuck well into negative territory on Thursday after weekly data revealed U.S. crude and fuel stockpiles were more abundant than expected last week, stoking concerns of a supply glut. Crude extends losses as U.S. supply report reveals ample stockpiles Crude takes a hit on bearish U.S. inventory report U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) dropped by 0.9 million barrels in the week ending Aug. 29 from the previous week, less than market forecasts for a decline of 1.1 million barrels, which sent prices falling due to fears the U.S. and global economy is awash in the commodity. At 359.6 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year, the Energy Information Administration said in a report. Total motor gasoline inventories fell by 2.3 million barrels last week compared to market calls for a decline of 1.3 million barrels.
GOLD
Gold prices moved lower on Thursday after upbeat U.S. service-sector data fueled demand for the greenback, though a European Central Bank decision to stimulate the economy cushioned losses by sending investors hedging the precious metal against a sliding euro. Gold dips on U.S. data, though ECB move cushions losses Gold slides on robust U.S. data, though ECB moves narrows losses The U.S. services sector grew at its strongest pace in August since 2005, data that boosted the dollar and sent gold prices dipping, as the two asset classes tend to trade inversely with one another. The Institute for Supply Management reported earlier that its services index rose to 59.6 in August from 58.7 in July, far surpassing market forecasts for a downtick to 57.5. A reading above 50 indicates expansion in the sector, and the index offset lackluster U.S. employment data.
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