Oil prices rose on Tuesday, lifted by indications that supply is gradually tightening, especially in the United States. “U.S. crude oil stocks have been falling consistently in recent weeks,”
Oil prices rise on signs of tightening market – Oil prices rose on Tuesday, lifted by indications that supply is gradually tightening, especially in the United States. “U.S. crude oil stocks have been falling consistently in recent weeks,” said Fawad Razaqzada, market analyst at futures brokerage Forex.com. “If the downtrend in oil inventories is maintained, then a bullish case can be made for oil, especially given the ongoing supply restrictions from OPEC and Russia,” he added. U.S. commercial crude inventories have fallen by almost 13 percent from their March peaks, to 466.5 million barrels. U.S. crude production has broken through 9.5 million barrels per day (bpd), its highest since July 2015, but analysts say growth may slow as U.S. energy firms cut the number of rigs drilling for new oil. “It looks like the growth in U.S. production is quickly running out of steam and, all else being equal, this should be good news for OPEC and the price of oil,” said Erik Norland of CME Group (NASDAQ:CME), a major commodity exchange. The weekly rollout of data on U.S. inventories starts later on Tuesday, giving the market a chance to see if the recent downward trend in U.S. crude stocks is continuing. “Another decline in U.S. crude stocks may push prices somewhat higher again, but the upside may be limited – especially if U.S. crude production ticks higher again,” said Hans van Cleef, senior energy economist at ABN AMRO (AS:ABNd) Bank N.V. in Amsterdam.
Gold slides as traders look ahead to Jackson Hole speeches – Gold prices edged lower on Tuesday, as market players looked ahead to the annual meeting of top central bankers and economists in Jackson Hole, Wyoming later this week. The yellow metal logged its highest finish in nearly 11 weeks on Monday as tensions between the U.S. and North Korea came back in focus. An annual meeting of top central bankers and economists hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, is set to take place from Thursday to Saturday, with keynote speeches from Janet Yellen and Mario Draghi in the spotlight. Their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks. Fed chair Yellen will speak on the topic of financial stability at 10:00AM ET (1400GMT) Friday. With minutes from the Federal Open Market Committee’s latest deliberations showing concern about soft inflation, she is not likely to give new guidance on policy. Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September. Later in the day, ECB chief Draghi will deliver remarks at 3:00PM ET (1900GMT). While market expectations had been previously high that Draghi would use his address to signal ECB tapering in the autumn, reports last week suggest he will not be making major policy announcements. Investors are likely to continue to fret over the latest headlines coming out of Washington after political developments shook the market last week. The deepening turmoil surrounding President Donald Trump’s administration intensified doubts that he would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.
Will Zinc Frenzy Ease after SHFE Price-Control? SMM Reports – Fundamentals in zinc market remain unchanged at present. When combined with strong bullishness, zinc prices will remain high in the near term, SMM said. China to Delete Some Metals from Scrap Import Embargo List. But the SHFE released restrictions on zinc contract positions. At the meantime, inflows of imported zinc are expected after the import profit window reopens. This will impact domestic spot market. SHFE Releases Restrictions on Zinc Contract Transaction. In this scenario, investors should be wary of technical fallbacks after longs leave the market after profit-taking, SMM warns.
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