Crude Oil down despite lower March production from OPEC

               Crude Oil futures are trading lower in the early part of Thursday’s Asian session despite news that the Organization of the Petroleum Exporting Countries produced slightly less crude last month. 

On the New York Mercantile Exchange, light, sweet crude oil futures for May delivery fell 0.28% to USD94.38 per barrel in Asian trading Thursday after settling down 0.18% at USD94.03 a barrel on Wednesday in the U.S. 

On Wednesday, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 250,000 barrels in the week ended April 5, well below expectations for an increase of 1.4 million barrels. 

Total U.S. crude oil inventories stood at 388.9 million barrels as of last week, the highest level since 1990, which kept prices lower. 

Crude and other commodities were hampered after several members of the Federal Reserve said the central bank should begin winding down its monetary easing program later this and perhaps end the program outright by year-end, according to the latest Federal Open Market Committee meeting minutes. 

"A few members felt that the risks and costs of purchases, along with the improved outlook since last fall, would likely make a reduction in the pace of purchases appropriate around midyear, with purchases ending later this year," the Fed said in the minutes. 

OPEC’s production fell by 170,000 barrels per day last month to 30.25 million barrels per day. Saudi Arabia, the cartel’s largest producer, pumped an average of 9.2 million barrels per day in March, about the same as it produced in the previous month. 

OPEC, which accounts for 40% of the world’s oil output, is producing at a rate slightly above its 30 million barrels per day limit. The cartel next meets on May 31 in Vienna. 

Elsewhere, Brent crude for May delivery fell 0.17% to USD105.46 per barrel on the ICE Futures Exchange.
Courtesy : investing.com

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Arizona inches towards Gold,Silver currency

                  More US states are preparing bills to recognize gold and silver as legal tender on fears that U.S. economy is going to collapse.

Arizona became one of more than a dozen states to incorporate similar laws into their roster, as many conservatives are harboring a growing distrust in government-backed money.

Arizona passed through their House of Representatives on Monday allowing gold and silver to be considered legal tender, comes as conservatives fear that the Federal Reserve is running the country's economy into a deep hole.

The Arizona bill, which advanced in a 4-2 vote by a House committee Monday, states that gold and silver should be legal currency not subject to tax or regulation as property.

The Republican-led Senate gave the bill its blessing in February in a 17-11 partisan vote.

Proponents of the switch to gold and silver argue paper money is too vulnerable to government manipulations.

When central banks boost the amount of currency in circulation to drive down interest rates, the value of that currency relative to others can decline.

Analysts said more US states are now rushing to push bills through allowing for gold and silver to be recognized as legal tender as politicians fear that the U.S. economy is going to collapse.

They said lawmakers say the global economy is on the precipice of financial ruin and the U.S. dollar could soon be worth less than the paper used to make it.

These doomsayers are pushing forward legislation that would declare privately minted gold and silver coins legal tender, no different under state law than the U.S. dollar printed by the federal Department of Treasury.

Arizona is one of more than a dozen states to incorporate similar laws into their roster, as many conservatives are harboring a growing distrust in government-backed money.

In 2011, Utah became the first state in the country to legalize gold and silver coins as currency.

Lawmakers in Minnesota, North Carolina, Idaho, South Carolina, Colorado and other states have debated similar laws in recent years.

Many investors have invested their money in precious metals in recent years as a hedge against the declining value of the dollar.

When the value of the dollar declines, gold prices rise.

Gold-backed money fell out of favor during World War I because the U.S. and many other countries needed to print more cash to pay for the war.

In 1971, President Richard Nixon formally abandoned the gold standard. Now Republicans are pushing for it to come back as they do not trust President Obama and the economic policies put into place by Ben Bernanke during his time as the chairman of the federal reserve.

Courtesy : Bullionstreet

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Natural Gas gains on market talk of bullish supply data

                         Natural gas futures shot up in afternoon trading on Wednesday, approaching 20-month highs on talk weekly supply data due for release on Thursday will reveal rising demand for the commodity.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.093 per million British thermal units, up 1.88%.

The commodity hit a session low of USD4.026 and a high of USD4.160.

The U.S. Department of Energy will release weekly supply data on Thursday, though early withdrawal estimates range from 20 billion cubic feet to 36 billion cubic feet. 

Inventories increased by 11 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 15 billion cubic feet.

Total U.S. natural gas in storage stood at 1.687 trillion cubic feet as of last week, 32% lower than last year at this time and 2.1% below the five-year average. 

Gas inventories had held above the five-year average since September 2011.

Meanwhile, updated weather forecasts called for a return of below-normal temperatures for central portions of the U.S., which pushed up prices even further.

U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were up 0.28% and trading at USD94.47 a barrel, while heating oil futures for May delivery were down 0.56% at USD2.9449 per gallon.

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