Brent Gains for First Time in Three Days on Ukraine; WTI Steady

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Brent crude rose for the first time in three days amid speculation that escalating violence in Ukraine may disrupt supplies to Europe from Russia, the world��s largest energy exporter. West Texas Intermediate was steady in New York.

Futures gained as much as 0.3 percent in London. Ukraine said it will press on with military operations against pro-Russian separatists after its forces retook Donetsk airport and inflicted œsignificant losses on the rebels. U.S. crude stockpiles probably expanded by 250,000 barrels last week, rebounding from the biggest drawdown since January, according to a Bloomberg News survey before an Energy Information Administration report tomorrow.

Brent for July settlement climbed as much as 33 cents to $110.35 a barrel on the London-based ICE Futures Europe exchange and was at $110.32 at 11:24 a.m. Sydney time. The contract declined 30 cents to $110.02 yesterday. The volume of all futures traded was about 46 percent below the 100-day average. Prices have advanced 2.1 percent this month.

WTI for July delivery was 14 cents higher at $104.25 a barrel in electronic trading on the New York Mercantile Exchange. The U.S. benchmark crude was at a discount of $6.11 to Brent. The spread shrank closed at $5.91 yesterday, the narrowest in six weeks.

Gasoline stockpiles in the U.S., the world��s largest oil consumer, probably increased by 250,000 barrels in the week ended May 23, according to the median estimate of eight analysts surveyed by Bloomberg. Distillate supplies, including heating oil and diesel, are projected to have slid by 200,000 barrels.

Copy Source: Bloomberg

Gold Extends Retreat to 15-Week Low on Improving U.S. Economy

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Gold fell to the lowest level in more than 15 weeks as U.S. economic data that beat estimates backed the case for the Federal Reserve to keep on reducing monetary stimulus and on concern demand in China is waning.

Bullion for immediate delivery decreased as much as 0.3 percent to $1,261.71 an ounce, the lowest price since Feb. 7, and traded at $1,262.41 by 8:26 a.m. in Singapore, according to Bloomberg generic pricing. The metal sank 2.2 percent yesterday in its biggest one-day decline this year after data showed U.S. durable goods orders unexpectedly rose in April.

Gold has rebounded 5.1 percent this year partly on unrest in Ukraine. Holdings in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, rose 1.1 percent to 785.28 tons yesterday, the biggest one-day gain since August 2011. Assets dropped to 776.89 tons on May 21, the lowest level since December 2008.

Copy Source: Bloomberg

Gold Futures Decline to Two-Week Low as Ukraine Outlook Weighed

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Gold fell to a two-week low in New York as investors assessed whether the election of Ukraine��s president will ease tension with Russia, reducing the metal��s appeal as a haven.

Ukraine��s President-elect Petro Poroshenko vowed to step up operations to rein in separatists in the east of the country as fighting continued after the weekend election. His victory has relieved the immediate pressure on the U.S. and the European Union to impose tougher sanctions against Russia. Gold rose 6.7 percent this year, partly as the tensions spurred haven demand.

Prices slid 28 percent last year on expectations the U.S. Federal Reserve would ease stimulus. Minutes released this month of the central bank��s April meeting showed policy makers said that continued stimulus to push unemployment lower doesn��t risk sparking an undesirable jump in inflation. The dollar rose as much as 2.7 percent versus the euro since May 8. Gold priced in dollars becomes more expensive for holders of other currencies when the greenback strengthens.

œThere��s no panic over Ukraine, Bernard Sin, the head of currency and metal trading at MKS (Switzerland) SA, a Geneva- based refiner, said today by phone. œThe strengthening dollar has also curbed demand, he said.

Gold for August delivery fell 0.7 percent to $1,282.80 an ounce by 7:33 a.m. on the Comex in New York. It reached $1,282, the lowest since May 12. U.S. markets were closed yesterday for the Memorial Day holiday and transactions will be booked today for settlement purposes.

Source : Bloomberg

WTI Oil Falls From Five-Week High on Ample Supply; Brent Steady

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West Texas Intermediate crude slipped from a five-week high on speculation that U.S. inventories are sufficient to meet increasing fuel demand. Brent traded near $110 after elections in Ukraine.

Futures fell as much as 0.6 percent in New York. U.S. crude supplies rose in April to the highest level since the government began publishing weekly data in 1982 and remain near a record for the time of year. Stockpiles at Cushing, Oklahoma, the delivery point for WTI, dropped to a six-year low in the week ended May 16.

WTI for July delivery fell 61 cents, or 0.6 percent, to $103.74 a barrel at 9:28 a.m. on the New York Mercantile Exchange. Futures touched $104.50 for a second day, the highest intraday level since April 21. The volume of all futures traded was 22 percent below the 100-day average.

Brent for July settlement decreased 40 cents to $109.92 a barrel on the London-based ICE Futures Europe exchange. Volume was 25 percent lower than the 100-day average. The North Sea crude traded at a $6.18 premium to WTI, compared with $6.19 at the close on May 23.

Source : Bloomberg

Dollar Strengthens After Durable Goods Orders Unexpectedly Gain

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The dollar strengthened to almost a one-month high after a report showed U.S. orders for durable goods unexpectedly rose in April.

The euro headed for the biggest monthly drop since January versus the U.S. currency after European Central Bank President Mario Draghi signaled yesterday that policy makers are ready to expand stimulus. South Africa��s rand slipped to the weakest level in almost a week as a report showed gross domestic product contracted for the first time since 2009 in the first quarter.

The Bloomberg Dollar Spot Index, which tracks the greenback against the performance of a basket of 10 major currencies, advanced 0.1 percent to 1,011.28 as of 8:48 a.m. New York time. The index reached 1,012.43 on May 23, the strongest level since April 24.

The euro fell 0.1 percent to $1.3640. Europe��s shared currency was little changed at 139.06 yen after declining to 138.15 on May 21, the least since Feb. 6. The dollar was little changed at 101.96 yen.

Source : Bloomberg