On Thursday, crude prices kept going down during early Asia trade, being weighed down by the ongoing growth in American oil stocks as well as the record-peak output by Saudi Arabia.
The combination of the two factors indicate that, notwithstanding the multiple supply disruptions as well as the steady dip observed in American production for recent months, the world’s still oversupplied.
In New York, September delivery light, sweet crude futures were worth $41.50 per barrel, down 0.5%. Meanwhile, October delivery Brent crude futures sagged 0.5%, trading at $43.83 per barrel.
Crude prices descended overnight after the Energy Information Administration data disclosed a 1.06 million-barrel growth in American crude inventories by August 5, thus pushing total stocks to 523.6 million barrels and also 37.7% above the five-year average for the same time of 2015.
The build actually reflects the soaring glut of refined products in the American market, that has led to lower margin and also reduced demand for oil.
Gold goes down in Asia
Gold tumbled during Asia trade as market participants booked profits and kept an eye open on the greenback’s weakness.
In New York, December delivery gold futures eased 0.06%, trading at $1,351.05 per troy ounce. September delivery silver futures ascended 0.15%, hitting $20.200 per troy ounce, while September delivery copper futures soared 0.23%, trading at $2.178 a pound.
Overnight, gold grew on Wednesday, as the greenback sagged steeply against a basket of its key counterparts, thus helping to provide a slight support to the most popular yellow metal in quiet, range-bound trade.
Market participants keep closely monitoring American employment data for a gauge on the strength of the labor market, following last Friday's upbeat jobs data for July. Additionally, on Wednesday, the US Department of Labor informed that in June, job openings soared by about 2% to 5.624 million from a relatively soft revised annualized rate of 5.514 million last month. Financial experts expected to see moderate surges on the month to 5.588 million.