Crude Oil inches up on inventories data

Mcx Energy Tips @ www.mcxfreetips.com

                            Crude Oil futures inched higher in the early part of Thursday’s Asian trade, buoyed by some supportive inventories data published during Wednesday’s U.S. session. 

On the New York Mercantile Exchange, light, sweet crude futures for June delivery nudged higher by 0.07% to USD91.50 per barrel in Asian trading Thursday after settling up 2.07% at USD91.03 a barrel on Wednesday in the U.S. 

On Wednesday, the U.S. Energy Information Administration said that U.S. crude oil inventories rose by 947,000 barrels last week, well below market calls for a gain of 1.513 million barrels, which sparked a rally in energy markets.

Oil inventories fell by 1.233 million barrels during the week before last. Gasoline inventories, meanwhile, fell by 3.928 million barrels compared with a decline of 633,000 barrels in the preceding week. Analysts were expecting U.S. gasoline inventories to fall 175,000. 

The inventories data helped traders overlook some concerning economic data. In U.S. economic news, the Commerce Department said durable goods orders fell 5.7% last month following a 4.3% increase in February. Orders excluding non-defense aircraft rose 0.2% missing economists’ expectations for 0.4% increase. Shipments of core capital goods rose 0.3% in March, but the February reading was revised lower to an increase of 1.2% from an initial reading of 1.9%. 

In Europe, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March. Analysts had expected the index to tick down to 106.2. 

Germany is the euro zone’s largest economy and the week Ifo index reading prompted speculation that the European Central Bank could lower interest rates at its next monetary policy meeting on May 2. 

Meanwhile, Brent futures for June delivery inched lower by 0.01% to USD101.83 per barrel on the ICE Futures Exchange.
Courtesy : Investing.com

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Gold rises in Asia on physical buying

Mcx Gold Tips @ www.mcxfreetips.com

                        Gold futures traded higher in the early part of Thursday’s Asian session, supported by a strong performance during Wednesday’s U.S. and speculation that physical buying remains robust in various parts of the world. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.23% to USD1,426.95 per troy ounce in Asian trading Thursday after setting up 1.03% at USD1,423.25 a troy ounce in U.S. trading on Wednesday. 

Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high. 

A batch of concerning economic data points out Wednesday sent traders scurrying for safe-haven plays and gold fit the bill, for one day at least. 

In U.S. economic news, the Commerce Department said durable goods orders fell 5.7% last month following a 4.3% increase in February. Orders excluding non-defense aircraft rose 0.2% missing economists’ expectations for 0.4% increase. Shipments of core capital goods rose 0.3% in March, but the February reading was revised lower to an increase of 1.2% from an initial reading of 1.9%. 

In Europe, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March. Analysts had expected the index to tick down to 106.2. Germany is the euro zone’s largest economy and the week Ifo index reading prompted speculation that the European Central Bank could lower interest rates at its next monetary policy meeting on May 2. 

Still, outflows at gold exchange-traded-funds continue. The SPDR Gold Shares, the world’s largest gold-backed ETF, saw holdings decrease 0.68% to 1,097.19 tons on Tuesday. 

Meanwhile, Comex silver for May delivery jumped 0.95% to USD23.050 per ounce while copper for May delivery fell 0.22% to USD3.161 per ounce.
Courtesy : Investing.com

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Natural Gas drops as forecasts point to warming trend across U.S.

                           Natural gas futures dropped in U.S. trading on Wednesday after updated weather forecasting services pointed to warmer temperatures setting in for much of the country.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.226 per million British thermal units, down 1.20%.

Forecasts for seasonably warm temperatures gripping much of the country sent prices falling, as warmer weather cuts into demand for heating in the nation's businesses and homes.

Prices have remained high in recent weeks due to below-normal temperatures remaining in place for much of March and early April.

Trading was a little edgy, as investors began to bet on when hotter temperatures will arrive, which will hike demand for air conditioning across the U.S. and send natural gas prices rising anew.

Natural gas prices are very sensitive to weather reports, as about half of the country relies on the commodity for heating. 

Investors were also bracing for Thursday's supply data.

Early injection estimates for this week’s storage data range from 24 billion cubic feet to 48 billion cubic feet. Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 50 billion cubic feet.

Typically this time of year, stockpiles begin to climb with the arrival of warmer spring temperatures. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 2.44% and trading at USD91.36 a barrel, mainly due to reports that U.S. stockpiles rose less than expected last week, while heating oil futures for May delivery were up 1.02% at USD2.8403 per gallon.
Courtesy : Investing.com

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