Crude oil prices climbed to fresh three-year highs on Thursday, as news of another weekly decline in U.S. crude inventories added to overall optimism over the rebalancing of the market
Gold Prices Hovering Near 4-Month Highs – Gold prices were hovering near after four-month highs on Thursday, propelled higher by a weaker dollar, which hit fresh three-year lows after the Trump administration signaled that it preferred a weaker currency. A weaker dollar tends to support gold prices by making the dollar-denominated metal cheaper for holders of other currencies. The dollar skidded lower after U.S. Treasury secretary Steven Mnuchin told the World Economic Forum in Davos on Wednesday that a “weaker dollar is good for trade.” The remarks were seen by markets as a departure from traditional U.S. currency policy. His comments, along with this week’s decision by President Donald Trump to impose import tariffs on washing machines and solar panels reignited concerns over his administration’s protectionist stance and its possible impact on global trade.
Crude Oil Prices at Fresh 3-Year Highs on Overall Optimism – Crude oil prices climbed to fresh three-year highs on Thursday, as news of another weekly decline in U.S. crude inventories added to overall optimism over the rebalancing of the market. Oil prices were boosted after the Energy Information Administration reported on Wednesday that U.S. crude inventories declined by 1.1 million barrels in the week ending January 19 to 411.58 million barrels. The commodity was already supported after the International Monetary Fund on Monday revised its forecast for world economic growth to 3.9% for both 2018 and 2019, a 0.2% increase from its last update in October. Prices have been broadly underpinned by supply restrictions led by the Organization of the Petroleum Exporting Countries and Russia, which started last year and are set to last throughout 2018. However, analysts and traders have recently warned that U.S. shale oil producers could ramp up production in the coming weeks as they look to take advantage of
higher prices, potentially derailing an OPEC-led effort to curb excess supply.
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