WTI Oil Trades Near One-Week High as Cushing Stockpiles Decline

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West Texas Intermediate traded near the highest price in more than a week after crude supplies at the delivery point for the benchmark U.S. contract dropped to the lowest level since 2008.

Futures were little changed in New York after advancing 1.3 percent yesterday, the most in a month. Crude stockpiles at Cushing, Oklahoma, the biggest oil-storage hub in the U.S., shrank by 1.4 million barrels to 24 million last week, the Energy Information Administration said. That��s the lowest level since December 2008. Total inventories dropped by 1.8 million, the first decline in five weeks, the EIA said.

WTI for June delivery was at $100.86 a barrel, up 9 cents, in electronic trading on the New York Mercantile Exchange at 8:48 a.m. Sydney time. The contract rose $1.27 to $100.77 yesterday, the highest close since April 29. The volume of all futures traded was about 76 percent below the 100-day average. Prices are up 2.5 percent this year.

Brent for June settlement gained $1.07, or 1 percent, to $108.13 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $7.36 to WTI, narrowing for a third day.

Total U.S. crude stockpiles fell to 397.6 million barrels in the week ended May 2, according to the EIA, the Energy Department��s statistical arm. Supplies were projected to rise 1.25 million, according to the median estimate of 10 analysts surveyed by Bloomberg.

Source : Bloomberg

Gold Falls Most in Three Weeks on Outlook for Fed Stimulus Taper

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Gold futures fell the most in three weeks on speculation that the Federal Reserve will further curb monetary stimulus as the U.S. economy recovers, crimping demand for the metal as an alternative investment.

Policy makers trimmed bond purchases for the fourth consecutive meeting last week. œSufficient underlying strength made the reductions œappropriate, Fed Chair Janet Yellen said today at a hearing of the congressional Joint Economic Committee. Bullion slumped 28 percent last year on concern the central bank would slow the pace of bond buying.

Gold futures for June delivery fell 1.5 percent to settle at $1,288.90 an ounce at 1:42 p.m. on the Comex in New York, the biggest decline since April 15.

Prices will have a œslow grind down and reach $1,050 by year-end as the U.S. economy strengthens, Goldman Sachs Group Inc. wrote in a report on May 5.

Gold jumped 70 percent from December 2008 to June 2011 as the Fed bought debt and cut interest rates to a record in a bid to boost the economy.

Source : Bloomberg

Dollar Rises From Six-Month Low as Yellen Cites Solid Growth

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The dollar rose from a six-month low against a basket of peers as Federal Reserve Chair Janet Yellen said the U.S. economy is poised for growth.

The euro traded at almost a seven-week high before the European Central Bank is forecast to refrain from adding additional monetary stimulus at a meeting tomorrow. The U.S. currency strengthened as Yellen told a congressional panel that data show œsolid growth for the economy in the second quarter, bolstering the case for a faster expansion this year. The New Zealand dollar slid versus all 16 of its major peers after Reserve Bank Governor Graeme Wheeler said the central bank may consider selling the currency if it fails to respond to worsening fundamentals.

The Bloomberg Dollar Spot Index, which monitors the greenback against 10 major counterparts, gained 0.1 percent to 1,002.99 at 11:34 a.m. in New York. It fell yesterday to 1,002.02, its lowest level since Oct. 29.

Source : Bloomberg

WTI Rises for Second Day as Crude Stockpiles Drop; Brent Climbs

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West Texas Intermediate advanced for a second day after an industry report showed crude stockpiles declined in the U.S., the world��s biggest oil consumer. Brent gained in London as the U.S. considered further sanctions on Russia.

Futures rose as much as 1.1 percent in New York. Total U.S. crude inventories shrank by 1.82 million barrels last week as supplies slid at Cushing, Oklahoma, the delivery point for WTI, the American Petroleum Institute said yesterday. The U.S. is discussing further sanctions on Russia amid violence in Ukraine, two White House officials told Congress.

WTI for June delivery increased as much as $1.09 to $100.59 a barrel in electronic trading on the New York Mercantile Exchange, before trading for $100.04 at 1:36 p.m. London time. The contract gained 2 cents to $99.50 yesterday. The volume of all futures traded was about 24 percent below the 100-day average for the time of day. Prices have advanced 1.6 percent this year.

Brent for June settlement rose 10 cents, or 0.1 percent, to $107.16 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.14 to WTI on ICE. The spread narrowed for a second day yesterday to close at $7.56.

Copy Source: Bloomberg

Gold Futures Drop for Second Straight Day as Dollar Rebounds

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Gold futures fell for the second straight day as a rebound by the dollar crimped demand for the precious metal as an alternative asset.

The greenback rose for the first time in four sessions against a basket of 10 currencies. Yesterday, the gauge touched a six-month low. Gold has gained 8.3 percent this year as the dollar dropped 1.5 percent. Federal Reserve Chair Janet Yellen is due to testify today to the Joint Economic Committee of the U.S. Congress.

Gold futures for June delivery fell 0.5 percent to $1,302.10 an ounce at 9:39 a.m. on the Comex in New York. Yesterday, the price dropped 0.1 percent. On May 5, the metal reached $1,315.80, the highest in almost three weeks, as escalating turmoil in Ukraine boosted demand for a haven.

In 2013, gold tumbled 28 percent, the most since 1981, partly on expectations the Fed would reduce monetary stimulus as the economy recovers.

Copy Source: Bloomberg

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