Gold and Copper Post Mild Increase after Upbeat China Trade Data

shutterstock_287368517-1

On Thursday, gold prices increase a little in Asia after upbeat trade statistic from China sustained demand hopes, although copper stayed a bit higher in spite of an impressive increase in imports in November.

Gold futures for February on the Comex division of the New York Mercantile Exchange increased 0.11% to $1,178.85 a troy ounce.

Somewhere else in precious metals trading, delivery of silver futures for March declined 0.22% to $17.237 a troy ounce, while delivery of copper futures  for March increased 0.04% to $2.648 a pound.

China reported its trade balance for November as an excess of $44.61 billion, compared with a surplus of $46.30 billion seen and exports posted a slight surge of 0.1%, beyond the decline of 5.0% projected, while imports increased 6.7%, beyond 1.3% declined seen.

The data showed copper imports increased 31% in November from the prior month to 380,000 tonnes, the highest since June on construction demand.

Suddenly, gold prices edged higher on Wednesday, however,  increased seen possible to stay limited as expectations for an interest rate increase by the Federal Reserve the upcoming  week weighed on the precious metal.

Gold stayed under pressure ahead of an anticipated interest rate hike by the U.S. central bank at its Dec. 13-14 meeting with a stronger greenback also hitting sentiment as the precious metal is priced in greenbacks.

Figures on Tuesday presented that U.S. factory orders increased at the fastest rate in nearly one-and-a-half years in October added to indications that the manufacturing sector is improving and fed into expectations for a rate increase.

On Additional News

On Thursday, oil prices increased in thin trading  after steep declines in the prior session, supported by a sluggish dollar, positive economic data and a decline in U.S.crude stocks.

International Brent crude futures were trading up 4 cents at $53.04 a barrel at 0345 GMT after closing the prior session down 93 cents.

U.S. benchmark West Texas Intermediate crude oil prices increased 14 cents to $49.90 a barrel after ending down $1.16.

Crude oil inventories in the U.S. declined to 2.4 million barrels in the week that ended on Dec. 2, compared with analyst anticipation for a draw of 1 million barrels.

However, stocks at the Cushing, Oklahoma, a delivery hub for U.S. crude futures, increased by a hefty 3.8 million barrels the previous week, the most since 2009, according to data from the U.S. EIA on Wednesday.

“Oil prices are being supported by a raft of factors including underlying strength in the U.S. economy shown in better than expected factory and nonfarm payroll data and Chinese regulators’ attempts to cut excess supply in steel and other industries,” said Michael McCarthy, chief market strategist at Sydney’s CMC Markets.

“While OPEC’s decision to curb output is grabbing the headlines traders feel this should be balanced against a lot of more positive economic data,” he said.

Oil prices have increased since the Organization of Petroleum Exporting Countries (OPEC) and Russia reached a landmark deal the previous week to reduce production to erode a global supply overhang and prop up prices.

Keep updated on the stock market as MXTrade reviews market events, and provides you with the most recent and accurate information. Sign up a live account with MXTrade today and experience our professional brokers!

Advertisements

Oil Increase 2% on Bets For Bullish U.S. Stockpile Data

shutterstock_192061547-4

On Wednesday, oil prices were suddenly higher during European hours, after declining to a six week low overnight, as market participants anticipate fresh weekly information on U.S. stockpiles of crude and refined products.

The U.S. Energy Information Administration will post its weekly report on oil supplies at 10:30AM ET (14:30GMT) during analyst expectations for a surge of 3.4 million barrels.

While stocks of distillates, which consist of heating oil and diesel,  are predicted to increase by 250,000 barrels, gasoline inventories are anticipated to decline by 567,000 barrels.

After markets closed Tuesday, the American Petroleum Institute stated that U.S. oil inventories drop by a huge 7.5 million barrels during the week ended September 16. The American Petroleum Institute (API) report also presented a decline of 2.5 million barrels in gasoline stocks, while distillates presented an increase of 1.4 million barrels in the week.

Delivery of crude oil for November on the New York Mercantile Exchange increase 93 cents, or 2.1%, to $44.98 a barrel by 3:50AM ET (07:50GMT).  On Tuesday, the deal reached a six week low of $43.06 during remaining concerns over a global supply excess.

Somewhere else, on the ICE Futures Exchange in London, delivery of Brent oil for November add on 80 cents, or 1.75%, to trade at $46.68 a barrel, moving away from the previous session’s six week low of $45.09.

Oil traders continued to influence prospects that major oil producing nations will freeze production to support the market when they meet next week.

Organization of the Petroleum Exporting Countries members, led by Saudi Arabia and other big Middle East crude exporters, will meet non-OPEC producers led by Russia at informal talks in Algeria between September 26 and 28.

According to market experts, the probabilities that the meeting would yield any action to lessen the global surplus looked minimal. Instead, many believe that oil producers will continue to observe the market and perhaps delay freeze talks to the official OPEC meeting in Vienna on November 30.

An effort to jointly freeze output levels prior this year failed after Saudi Arabia backed out over Iran’s rejection to take part of the initiative, underscoring the difficulty for political rivals to forge consensus.

Later in the day, the market is also waiting for the results of the Federal Reserve meeting, for additional trading indications.

The BoJ kept rates unmoved at -0.1% after its recent meeting and broadcasted that it would modify its policy framework, marking the recent attempt to increase inflation.

Among the changes, the Bank of Japan stated it would introduce yield curve controls, remove the maturity range of its bond purchases and discard its monetary base goals.

Be updated on the stock market as MXTrade reviews of market happenings, provide you with the most recent and accurate information. Sign up a live account with MXTrade today and experience our professional brokers!

Crude Oil Futures: September 19-23 Weekly Outlook

oil-rig

On Friday, oil futures decline suddenly, with U.S. crude prices reaching more than five week decline as an indication of a continuing recovery in U.S. drilling activity joint with increasing exports from Organization of the Petroleum Exporting Countries (OPEC) added to concerns over a worldwide supply surplus.

On September 19, oil prices increase nearly 2%, after Venezuela said OPEC and non-OPEC producers were close to getting a production agreement and as clashes in Libya elevated concerns that struggles to restart crude exports could be interrupted.

On the NYMEX, delivery of crude oil in October dropped to a daily low of $42.74 a barrel, a level not seen since August 11. It ended at $43.03 by close of trade, drop 88 cents, or 2%, on the day.

During the week, New York traded oil futures declined $2.54, or 6.2%, the 3rd weekly loss over the past four weeks.

Market participants continued to concentrate on U.S. drilling predictions, during signs of a current recovery in drilling activity. Late Friday, oilfield services provider Baker Hughes stated that the number of rigs drilling for oil in the U.S. the previous week increase by 2 to 416, indicating the 11th increase in 12 weeks.

That happened after government data published on Wednesday presented large weekly builds in U.S. petroleum products.

Distillate  inventories, including diesel, surges by 4.619 million barrels the previous week, much higher than expectations for an increase 1.543 million barrels, according to the U.S. Energy Information Administration.

The increased was the biggest weekly build since January and put distillate stocks at six year seasonal peaks.

The report also presented that gasoline inventories increase by 567,000 barrels, disappointing anticipations for a 343,000-barrel drop.

Somewhere else, on the ICE Futures Exchange in London, delivery of Brent oil for November fell 82 cents, or 1.76% on Friday to settle at $45.77 a barrel by the close of trade. The deal fell to $45.48 earlier, the lowest since September 2.

During the  week, London-traded Brent futures dropped $2.04, or 4.67%, during increasing concerns over the probability of returning crude supplies from Libya and Nigeria.

Libya and Nigeria are both members of the Organization of the Petroleum Exporting Countries. Increased output from the two countries could upset the hard work by the oil group to cap production in order to rebalance the market.

Swelling Iranian exports further reinforced worries of a global surplus. The 3rd biggest OPEC producer increased crude exports to more than 2 million barrels per day in August, approaching pre-sanctions levels.

Attention now changes to the upcoming meeting between major oil producers later in September to discuss an production freeze.

OPEC members, headed by Saudi Arabia and other big Middle East crude exporters, will meet non-OPEC producers headed by Russia at informal talks in Algeria between September 26 and 28.

According to market experts, “chances that the meeting would yield any action to reduce the global glut appeared minimal. Instead, most believe that oil producers will continue to monitor the market and possibly postpone freeze talks to the official OPEC meeting in Vienna on November 30.”

An effort to jointly freeze output levels earlier this year was unsuccessful after Saudi Arabia backed out over Iran’s rejection to participate of the initiative, emphasizing the struggle for political competitors to forge consensus.

In the week onward, oil traders will be concentrating on U.S. stockpile data on Tuesday and Wednesday for new supply and demand indications.

Market participants will also continue to observe progresses before the informal meeting of major oil producing countries in the coming week.

On Additional News

On September 20, Tuesday, the American Petroleum Institute, an industry group, is to post its weekly report on U.S. oil supplies.

On September 21, the U.S. Energy Information Administration is to post its weekly report on oil and gasoline stockpiles.

Baker Hughes will release weekly data on the U.S. oil rig count on September 23.

Be updated on the stock market as MXTrade reviews of market happenings provide you with the most recent and accurate information. Sign up a live account with MXTrade today and experience our professional brokers!

Oil Inch Higher on Expectations for Bullish U.S. Stockpile Data

https://www.mxtrade.com/

On Wednesday, oil prices inched higher during European hours, after declining suddenly as market participants anticipated new weekly information on U.S. stockpiles of crude and refined products.

The U.S. Energy information Administration will post its weekly report on oil supplies at 10:30AM ET during analyst anticipations for a surge of 3.8 million barrels.

Gasoline inventories are anticipated to increase by 343,000 barrels while stocks  of distillates, which consist of heating oil and diesel, are predicted to increase by 1.543 million barrels.

After the market closed on Tuesday, the American Petroleum Institute stated that the U.S. oil inventories surge by 1.4 million barrels in the week ended September 9, 2016

The American Petroleum Institute (API) report also displays a drop of 2.4 million barrels in gasoline stocks, although distillates showed an increase of 5.3 million barrels on the week.

Delivery of Crude oil for October on the New York Mercantile Exchange add on 38 cents, or 0.85 percent, at $45.28 a barrel by 4:14AM ET (08:14GMT).

On Tuesday, New York traded oil futures dropped $1.39, or 3 percent, after the International Energy Agency  advised in its latest monthly report that the oil market will stay oversupplied at least through the first half of  the year 2017 due to the decline in demand growth and increasing global supplies.

Temporarily, on the ICE Futures Exchange in London, delivery of Brent oil for November edge up 34 cents, or 0.72%, to trade at $47.44 a barrel. A day before, London-traded Brent futures sank $1.22, or 2.52 percent.

Oil traders continued to influence forecasts that major oil producing nations will freeze production to support the market when they meet later this month.

The Organization of the Petroleum Exporting Countries, led by Saudi Arabia and other big Middle East crude exporters, will meet non-OPEC producers led by Russia at informal talks in Algeria between September 26 and 28.

According to market experts, the possibilities that the approaching meeting would yield any action to lessen the global surplus looked minimal. Instead, most consider that oil producers will remain to observe the market and perhaps postpone freeze talks to the OPEC officials meeting in Vienna on November 30.

An effort to jointly freeze production levels earlier this year was unsuccessful after Saudi Arabia backed out over Iran’s rejection to participate of the initiative, emphasizing the difficulty for political rivals to forge consensus.

Keep updated on the stock market as MXTrade reviews market events, and provides you with the most recent and accurate information. Sign up a live account with MXTrade today and experience our professional brokers!