Crude oil rises after API data shows supply decrease

  

                Crude oil futures traded higher in the early part of Thursday’s Asian session after data from the American Petroleum Institute showed U.S. oil inventories declined last week. 

On the New York Mercantile Exchange, light, sweet crude futures for October delivery rose 0..18% to USD107.42 per barrel in Asian trading Thursday. The October contract settled lower by 1.21% at USD107.23 per barrel on Wednesday. 

Earlier Thursday, the American Petroleum Institute said U.S. oil inventories declined fell by 4.2 million barrels for the week ended Aug. 30. Analysts expected a decline of 2.5 million barrels. 

API also said gasoline stockpiles declined by 387,000 barrels while distillate supplies fell 109,000 barrels. Analysts expected a 1 million-barrel drop in gasoline inventories and an increase of 800,000 barrels for distillates. 

The API data comes a day before the more widely followed Energy Information Administration report. Both reports were delayed by one day this week because U.S. markets were closed Monday in observance of the Labor Day holiday. 

Oil fell Wednesday as traders seemed to believe a U.S. military strike against Syria is not as imminent as previously believed. 

Meanwhile, the Federal Reserve’s Beige Book report released during Wednesday’s U.S. session showed a moderate and improving pace of economic growth across all 12 Fed regions. 

In other U.S. economic news, the U.S. Commerce Department reported that the U.S. trade deficit widened more than expected in July, hitting USD39.1 billion from a downwardly revised USD34.5 billion deficit in June, mainly due to improving imports. 

Elsewhere, Brent crude futures for October delivery were flat at USD115.02 per barrel on the ICE Futures Exchange. - investing.com

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Gold recoups some of Wednesday’s losses

                   Gold futures traded higher in the early part of Thursday’s Asian session as traders appeared to be buying a dip caused by a Wednesday sell-off in bullion. 

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery rose 0.22% to USD1,392.70 per troy ounce in Asian trading Thursday. The October contract settled down 1.57% at USD1,389.60 per ounce on Wednesday. 

Gold futures were likely to find support at USD1,374.10 a troy ounce, the low from Sept. 1, and resistance at USD1,416.30, Tuesday's high. 

Waning fears over an imminent military strike against Syria coupled pressured gold because the yellow metal’s safe-haven status has been embraced during the current batch of Middle East geopolitical strife. 

As U.S. President Barack Obama worked to gain already growing bipartisan support in Congress to strike Syria, Russian President Vladimir Putin said earlier he might support any U.N. Security Council resolution calling for military strikes provided that body was presented with conclusive proof that the Syrian government employed chemical weapons. 

Gold also came under pressure as the Federal Reserve’s Beige Book report released during Wednesday’s U.S. session showed a moderate and improving pace of economic growth across all 12 Fed regions. 

In other U.S. economic news, the U.S. Commerce Department reported that the U.S. trade deficit widened more than expected in July, hitting USD39.1 billion from a downwardly revised USD34.5 billion deficit in June, mainly due to improving imports. 

Gold traders will now focus on a spate of central bank meetings Thursday, including meetings by the Bank of Japan and the European Central Bank. 

Elsewhere, Comex silver for December delivery rose 0.44% to USD23.520 per ounce while copper for December delivery added 0.08% to USD3.250 per ounce. - investing.com

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