Oil prices fell further on Wednesday, extending sharp losses from the previous session amid speculation weekly supply data due later in the day will show a large increase in U.S. crude inventories
Oil Prices Drop Further on Bets for Bearish U.S. Supply Data – Oil prices fell further on Wednesday, extending sharp losses from the previous session amid speculation weekly supply data due later in the day will show a large increase in U.S. crude inventories. Oil prices lost almost 2% on Tuesday after the International Energy Agency cut its global oil-demand forecasts and projected an increase in U.S. shale production, casting doubts over the past few months’ narrative of tightening energy markets. This week’s price drop means that crude futures are now down by around 5% since reaching 28-month highs last week, ending an impressive 40% rally between June and early November. Despite the cautious sentiment, crude prices are expected to remain supported amid optimism that oil producing countries will agree to extend an output cut at their meeting at the end of this month. Discussions are continuing in the run-up to the Nov. 30 meeting, which oil ministers from OPEC and the participating non-OPEC countries will attend.
Gold Prices Hold Steady Ahead of U.S. Inflation Data – Gold prices were little changed in early deals on Wednesday, as investors looked ahead to U.S. inflation data to gauge how it will impact the Federal Reserve’s view on monetary policy in the months ahead. The Fed is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Investing.com’s Fed Rate Monitor Tool. A weaker dollar boosts gold as the falling currency makes the dollar-priced bullion more attractive to investors using another currency. Uncertainty over the outlook for U.S. tax reform also supported the precious metal’s move higher. U.S. Senate Republicans on Tuesday said their tax plan will involve the repeal of the Obamacare individual mandate that requires most Americans to have some form of health coverage. Markets are concerned about whether or not the tax plans can be passed before the year ends. Republicans had initially hoped to hold a final vote on the bill by Thanksgiving next week, but analysts expressed some doubt at the timeline.
Gloomy Wednesday, SHFE Nickel Falls staying, Leading Loss across the Board – Today see a gloomy market. Both ferrous and nonferrous markets go down. SHFE Nickel falls staying, leading loss among base metals with over 6% drop. SHFE Zinc drops over 3%. SHFE Lead and Copper drops over 2%. SHFE Tin and Aluminium drops slightly. Iron ore leads ferrous metals slumping with over 4% drop. Coking coal drops nearly 3%. RB steel drops over 2.5%. Coke drops over 1%. Hot-rolled coil drops 0.79%.
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