Weak Chinese Data Sees Oil Remain on Course for Longest Losing Streak in 9 Months

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Commodities Trading

: 22 August 2014

The US crude oil market is on track for its fifth weekly drop which would be the commodity's longest slump in almost 9 months.

Oil initially weakened on Thursday after weakening manufacturing reports in China, however, things picked up after positive figures from the US.

This meant that WTI rallied to close the day up at $93.92 per barrel on the NYMEX exchange.

Spot gold is still close to two month lows, with the market falling further after the release of the FOMC minutes.

Gold has been having a rough week as stocks have strengthened and the dollar has pushed close to 11 month highs.

The precious metal reached a low of $1,284.80 on Thursday as investors worried that a potential rise in US interest rates will make it less attractive.

Commodities Trading

: 21 August 2014

US crude oil climbed for the first time this week after the API reported that supplies fell by 1.4 million barrels which was much more than analysts expected.

On the New York Mercantile Exchange, WTI October futures tracked 0.74% higher, or $0.69, to trade at $93.55 per barrel.

Spot gold continued to fall on Wednesday, dropping almost 0.4%.

The precious metal fell by more than $5 as FOMC minutes revealed a general consensus among policy makers that the labour market is stable enough to consider a rise in interest rates.

Traders will now be keeping a close eye on Thursday's initial jobless claims and manufacturing data for the US and the Eurozone.

Commodities Trading

: 20 August 2014

It's been a rough week for West Texas Intermediate oil, with futures continuing to decline on Tuesday.

The market has been suffering from high supply and the fall was furthered by expectations of a third consecutive increase in stockpiles.

WTI dropped by 2% to close at $94.48 per barrel, its lowest level in over 8 months.

Gold continues its struggle this week, with the precious metal falling further on Tuesday and remaining below the $1,300 level.

Falling prices were aided by rising equities as the US recovery seeming to gain momentum on some positive housing data.

Gold's saving grace this year seems to have come from geopolitical tensions in the Ukraine and the Middle East, helping to support the precious metal.

Commodities Trading

: 19 August 2014

West Texas Intermediate (September) futures fell by more than 1% to $96.24 per barrel on Monday as Iraqi Kurds regained some control over the Mosul Dam.

The end of last week saw crude oil prices climb, with the situation in Ukraine putting some doubt in the heart of traders.

However, the slight easing of geopolitical tensions caused prices to slide and could see both WTI and Brent continue to fall in what's already been a rough month for the commodity.

After a slow week for gold traders not much has changed with the precious metal remaining in a tight range.

Interest in gold is not what it used to be; long gone are the days where risk events would see strong rallies in the precious metals.

Some investors are starting to lose faith in gold's safe-haven demand given its performance over the past year and a half.

The situation hasn't been helped by the recent rally in equity markets either.

Commodities Trading

: 18 August 2014

Predictably enough, West Texas Intermediate oil climbed on Friday after Ukraine announced that they had clashed with Russian armoured forces.

Oil prices regained strength, utilising fears that a potential escalation could see one of the world's top exporters of oil and gas face disruptions in shipments out of the country.

WTI futures for September delivery rose by 1.9% to settle at $97.35 per barrel on the New York Mercantile Exchange.

After a slow week for gold traders, the prices of the precious metal fell on Friday, finally breaking its tight range for the week.

Gold came under pressure from US economic data, with the market showing less risk aversion.

However, the metal recovered from its session low thanks to an escalation of geopolitical tensions in Ukraine.

Focus for gold now shifts to the Fed, with Wednesday's FOMC minutes likely to be a key factor behind traders' decision making in the coming week.

By Jonathan Sudaria, 22 August 2014

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