Congratulations! Gold has just opened a new era... or, rather, reopened...
Crude sinks 1% on surprise soar in US inventories
On Wednesday, crude lost 1%, with ascending US fuel inventories pulling American crude back below $50 per barrel. Meanwhile, still high OPEC supplies put pressure on international oil prices.
American West Texas Intermediate crude futures hit $48.69 per barrel descending 1% from its previous settlement. It took place after on Tuesday the contract started above $50 for the first time since May 25.
As for Brent crude futures, this benchmark lost nearly 1% too, sticking to $51.31 a barrel.
According to the American Petroleum Institute, by July 28 American crude stocks managed to jump by 1.8 million barrels, ruining hopes that recent inventory draws turned to be a sign of a tightening American market.
Outside the USA, this week Brent futures were suppressed by reports, showing output from OPEC at a 2017 maximum of 33 million barrels a day. It’s notwithstanding OPEC's promise to limit output along with other non-OPEC oil producers by about 1.8 million bpd from January to March 2018.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.