Crude prices fell on Wednesday, extending losses into a third session, amid speculation weekly supply data due later in the day will show an increase in U.S. oil
Oil Prices Continue Lower Ahead of EIA Weekly Supply Report – Crude prices fell on Wednesday, extending losses into a third session, amid speculation weekly supply data due later in the day will show an increase in U.S. oil and fuel supplies. Oil prices ended lower on Tuesday, pulling further away from their strongest levels since late 2014, as traders weighed a steady increase in U.S. output against OPEC’s ongoing efforts to drain the market of excess supplies. Analysts and traders have recently warned that U.S. shale oil producers could ramp up production as they look to take advantage of higher prices, potentially derailing OPEC’s effort to curb excess supply. Oil prices have risen almost 55% from around $43 a barrel in June, benefiting from production cut efforts led by the Organization of the Petroleum Exporting Countries and Russia. The producers agreed in December to extend current oil output cuts until the end of 2018. The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.
Gold Edges Higher Ahead of Fed Decision – Gold prices edged higher on Wednesday, as investors looked ahead to the outcome of the Federal Reserve’s policy meeting, the last under the leadership of Janet Yellen before she hands the chairmanship over to Jerome Powell. The dollar saw renewed selling pressure, falling almost 0.4% against a basket of six major currencies to 88.68 in early trade and sliding back towards its weakest level since Dec. 2014. The Fed is widely expected to keep interest rates unchanged. Investors, however, will be focusing on the central bank’s policy statement for hints on the monetary policy outlook. The majority of economists believe that the U.S. central bank will hike rates in March, followed by another hike in June, with a third move higher arriving in December. Gold is highly sensitive to rising rates, which increase the opportunity cost of holding non yielding bullion. Besides the Fed, investors also looked ahead to key U.S. economic data due later in the session for fresh clues
on the likely trajectory of monetary policy in the months ahead.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
Our Some Best Services Read it Here…