NYMEX and Brent dip slightly in Asia
On Wednesday, oil prices eased during Asia trade as industry data on American stockpiles appeared to be bearish.
According to estimates from the American Petroleum Institute, there was a sink of about 800,000 barrels the previous week, short of an expected descent of more than 2 million barrels, while the figures unveiled supplies at the oil-storage hub at Cushing, Okla surged by approximately 1.4 million barrels.
Additionally, Wednesday's government report could disclose that oil stockpiles sagged by about 2.3 million barrels for the week, with the 10th consecutive weekly sag in inventory levels nationwide. However, the current stockpile still remains above the five-year average by about 100 million barrels in spite of the recent drawdown.
In New York, September delivery WTI crude futures dipped 0.09%, hitting $42.88. Additionally, Brent crude sagged 0.15%, trading at $45.16 a barrel.
Overnight, American crude futures edged down to new 3-month minimums.
Gold prices edge down in Asia
Gold prices slumped during Asia trade with market participants glued for the latest policy review by the major American bank to be announced later today.
In New York, December delivery gold futures sank 0.24%, hitting $1,325.15 per troy ounce.
September delivery silver futures dipped 0.22%, trading at $19.640 per troy ounce, while September delivery copper futures surged 0.45%, trading at $2.233 per pound.
Overnight, the number one precious metal soared, remaining close to one-month minimums, as policymakers from the Federal Reserve obtained a final opportunity to digest a mixed pack of economic data ahead of a closely-watched interest rate verdict in the middle of the week.
The Federal Open Market Committee also dubbed FOMC is supposed to leave its benchmark interest rate at a targeted range 0.25%-0.50% for their fifth straight gathering. On Tuesday, the CME Group's Fed Watch tool placed the likelihood of a July rate lift at about 2.4%.
Aussie descends following mixed CPI data
The Australian dollar sagged during Asia trade after consumer price data kicked in a tad weaker than expected.
The currency pair AUD/USD was worth 0.7497, showing a 0.08% slump, while USD/JPY traded at 105.18, with a 0.52% rise.
In Australia, CPI data for the second quarter demonstrated a 0.4% soar quarter-on-quarter as expected. Meanwhile, the year-on-year figure was 1%, just a bit below the 1.1% pace observed.
As for year-on-year inflation - the most crucial number for the market as well as the Reserve Bank, it was somewhat higher than expected, hitting 1.5%.
Accordingly, the overall outcome is quite mixed, though still keeps alive the probability of a rate drop at the RBA's August board gathering. A lot will depend on how the RBA considers inflation pressures going ahead and that extent still-soft housing-related inflation. Obviously, soft non-tradable inflation might push Australia’s major financial institution over the line for a cut.
Brent and NYMEX earn in Asia as traders look ahead to API estimates
On Tuesday, crude oil prices held their revenues with traders cautious after bearish supply forecasts unsettled the energy market overnight and also ahead of industry estimates on American stockpiles.
The American Petroleum Institute is expected to publish its estimates of American crude and refined stockpiles late on Tuesday, with the US Department of Energy to issue its own more closely-watched data on Wednesday.
In New York, September delivery WTI crude futures soared 0.23%, hitting $43.23 per barrel, while October delivery Brent crude futures soared 0.33% at $45.28 per barrel.
Overnight, oil futures edged down abruptly, going down to a new three-month minimum, as continuing concerns regarding global oversupply as well as a resurgent American dollar remained in focus.
During Monday's trading session, crude sagged to its lowest value since late-April as market participants reacted to further indications of a supply glut on global energy markets.
Gold dips towards 1-month minimum ahead of Fed gathering
On Tuesday, gold kept extending its losses from the previous session during European trade, going down towards a one-month minimum, as market participants readjusted their trading positions ahead of the Fed’s two-day monetary policy gathering due to start later this day.
As a matter of fact, the Fed isn’t supposed to take action on interest rates at the conclusion of its gathering on Wednesday, though market participants are on the verge of scrutinizing its policy statement for new hints as for the timing of interest rate lifts within the next several months.
In New York, December delivery gold futures sank 0.18%, being worth $1,324.80 per troy ounce. Yesterday, the given commodity dipped to a session minimum of $1,311.10 per troy ounce, just higher a one-month minimum of $1,310.70, as renewed hopes for a Federal Reserve rate lift later this year drove the greenback.
A recent string of better than expected American data revived rumors that the Fed is going to lift interest rates before the end of 2016. Currently, interest rate futures are pricing in a 52% chance of a rate lift by December, compared to less than 20% the previous week and up from 9% at the beginning of this month.
On Monday, crude prices reversed their early revenues and eased a bit during Asia trade, with the normal weekly data sets in the USA on stockpiles ahead and market participants looking for any demand cues from the Def as well as Bank of Japan this week amid a struggling global economy.
In New York, crude oil for September delivery slumped 0.11%, hitting $44.14 per barrel. Meanwhile, in London, September delivery Brent crude futures dropped 0.11%, being worth $46.06 per barrel.
The previous week, crude futures concluded Friday’s trading session at the lowest value for almost three months, as worries over global oversupply intensified after data showed that the American oil rig count surged for the fourth week in a row the previous week.
Baker Hughes, oilfield services provider informed late Friday that the previous week the overall number of rigs drilling for oil in America soared by 14 to 371, the fourth straight weekly soar and the seventh rise for eight weeks.
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