Oil Sees Gains as Stockpiles Fall in Both Crude and Distillates

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Commodities Trading

: 07 February 2014

With surprisingly good US employment news, the feel good factor easily spilled over into the energy complex pushing the WTI crude prices 67¢ higher to $97.91.

Gold has edged higher to $1258.3 as Chinese demand made a comeback after the New Year celebrations.

During the overnight trading session the precious metal looked poised to stay on the offence.



Commodities Trading

: 06 February 2014

The weekly oil inventories report not only showed the anticipated drop in distillate fuel as a result of the cold weather, but also a weaker build for crude oil stockpiles.

That pushed crude prices higher initially but some late profit taking reversed the trend, with US crude oil finishing $0.34 in the red at $97.26 per barrel.



Commodities Trading

: 05 February 2014

Nymex crude oil climbed by $0.99 to $97.60 per barrel yesterday, as the energy sector expects distillate stockpiles to plunge due to the cold weather in America.

A timid rebound for US stocks also pushed some participants to close their short positions ahead of a very busy rest of the week.

Gold prices were hurt yesterday as a rally in emerging market currencies helped shift sentiment towards a risk-on stance.

The precious metal lost $2.8 to $1,254.6 as the signs of a possible stabilisation in global markets reduced demand for alternative investments.



Commodities Trading

: 04 February 2014

Factory output in both China and the US disappointed yesterday, signalling a possible drop in energy demand going forward.

Meanwhile a sell off in equity markets trumped the support of a weaker dollar sending US crude oil $0.76 down to $96.58.

The Non-Farm Payrolls data due on Friday will be looked upon for any extra useful hints for energy investors.

Gloomy economic data across the board encouraged a risk off day, which was welcomed by precious metal investors.

The price of gold extended its rally, gaining $14.7 to $1,257.6 on safe haven demand.



Commodities Trading

: 03 February 2014

Concerns over energy demand in developing countries pushed US crude oil prices $0.54 lower to $97.48.

Some profit taking ahead of the weekend also helped discard the strong support offered by the unusually cold weather in the eastern United States.

Gold managed to gain $1.3 to $1,245 on Friday, despite reports that Asian physical demand fell as we headed into the Chinese New Year celebrations.

This was an interesting display considering that the sharp tumble in the euro/dollar pair should have added additional downside pressure to the precious metal.


By Jonathan Sudaria, 7 February 2014


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