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Oil Rises 4.5% To 7-Week High

Author:
Eray Bekir
Market News

Oil prices gained more than 4% a barrel on Wednesday after U.S. crude inventories shrank more than expected and as major producers evacuated rigs in the Gulf of Mexico ahead of an expected storm.

Brent crude futures were up $2.88, or 4.49%, to $67.04 a barrel U.S. West Texas Intermediate crude futures climbed $2.60, or 4.5%, to $60.43 a barrel.

U.S. crude stocks fell 9.5 million barrels in the week to July 5, more than triple the 3.1 million-barrel draw analysts had expected as refineries ramped up output, the Energy Information Administration (EIA) said.

“Oil prices are supported not only by the greater than expected draw in the EIA crude oil inventories, but with the evacuation of several platforms in the Gulf of Mexico in advance of a tropical storm, that will curb production,” said Andrew Lipow, president of Lipow Oil Associates.

Gold prices recouped losses to rise more than 1% on Wednesday as the dollar slid after U.S. Federal Reserve Chairman Jerome Powell fanned expectations of an interest rate cut, citing risks to the U.S. economy.

Powell said concerns about trade policy and a weak global economy “continue to weigh on the U.S. economic outlook” and the Fed intended to “act as appropriate” to sustain a decade-long expansion.

Spot gold rose 1.1% to $1,413.20 per ounce. Prices had dropped to $1,389.55 earlier in the session. U.S. gold futures for August delivery rose 1.1% to $1,415.40 per ounce.

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.