Oil drops for second day; market awaits U.S. stocks data-SapForex24

Crude oil lost more ground on Wednesday with rising U.S. oil output adding pressure on the market, although OPEC production cuts continued to offer support.
Investors in the oil market are awaiting weekly inventories data from the U.S. Energy Information Administration due at 1530 GMT on Wednesday.

West Texas Intermediate crude futures lost 15 cents, or 0.3 percent, to $53.86 a barrel by 0723 GMT, and Brent crude gave up 13 cents, or 0.2 percent, to $56.38.
“Signs that the U.S. shale industry is recovering weighed on the market,” ANZ said in a report.

U.S. Crude stockpiles have risen for seven straight weeks. Forecasts for another build last week, this time of 3.1 million barrels, have fueled worries that demand growth may not be sufficient to soak up the global crude oil glut.

Forex and Comex Market News Update-SapForex24
   Forex and Comex Market News Update-SapForex24

U.S. stockpiles rose 2.5 million barrels in the week ended Feb. 24, according to a report from trade group the American Petroleum Institute. Gasoline stockpiles rose unexpectedly and distillate stockpiles fell more than expected, the API said. Crude declined slightly on the report.

The market rose earlier in the session as a speech by U.S. President Donald Trump offered little on plans by his administration to boost U.S. oil production.

Market participants had been expecting President Trump to include details on energy policy in a speech to the U.S. Congress but his remarks lacked any specifics.
“If Trump had announced de-regulations of some of the environment protections to make it easier to pump more oil, that might have put pressure on WTI,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

“Now all the attention is around to EIA’s crude inventories data tonight.”
The Organization of the Petroleum Exporting Countries (OPEC) has cut its oil output for a second month in February, a Reuters survey found on Tuesday, showing the exporter group has boosted already strong compliance with its supply curbs on the back of a steep reduction by Saudi Arabia.

Brent Oil looks neutral in a range of $55.93 to $57.26 per barrel, and an escape could suggest a direction, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

U.S. oil may edge up to a resistance at $54.28 per barrel, a break above which could lead to a further gain to $54.62.

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Oil rises toward 7-week highs as investors await U.S. supply data-SapForex24

Oil prices were higher during European morning hours on Thursday, rising back toward a seven-week high after data overnight showed a surprise drop in U.S. crude supplies.

The U.S. West Texas Intermediate Crude April contract rose 81 cents, or 1.5%, to $54.39 a barrel by 4:15AM ET (09:15GMT), after losing 74 cents, or 1.4%, on Wednesday. The U.S. benchmark reached $55.03 on Tuesday, a level not seen since January 3.

After markets closed Wednesday, the American Petroleum Institute said that U.S. oil inventories surprisingly fell by 884,000 barrels in the week ended February 17, breaking a trend of six-straight builds.

CRUDE OIL-FOREX & COMEX MARKET NEWS HEADLINES-SAPFOREX24
 FOREX & COMEX MARKET NEWS HEADLINES-SAPFOREX24

The oil storage hub of Cushing, Oklahoma, saw a draw of 1.73 million barrels, the sixth decline in seven weeks.

The API report also showed a decline of 893,000 barrels in gasoline stocks, while distillate stocks dropped a sharp 4.23 million barrels.

The U.S. Energy Information Administration will release its official weekly oil supplies report at 11:00AM ET (16:00GMT) Thursday.

The report comes out one day later than usual due to Monday’s President’s Day holiday.

Elsewhere, Brent oil for April delivery on the ICE Futures Exchange in London added 85 cents, or nearly 1.6%, to $56.70 a barrel. The global benchmark dropped 82 cents in the prior session.

Oil prices have been trading in a narrow $5 range around the mid-$50s over the past two months as sentiment in oil markets has been torn between hopes that oversupply may be curbed by output cuts announced by major global producers and expectations of a rebound in U.S. shale production.

Elsewhere on Nymex, gasoline futures for March rose 1.8 cents, or 1.2%, to $1.537 a gallon, while March heating oil jumped 2.3 cents ,or 1.5%, to $1.653 a gallon.

Natural gas futures for April delivery added 3.2 cents, or 1.2%, to $2.734 per million British thermal units, as market participants looked ahead to weekly storage data due later on Thursday, which is expected to show a draw of 85 billion cubic feet in the week ended February 17.

That compares with a withdrawal of 114 billion cubic feet in the preceding week, 117 billion a year earlier and a five-year average drop of 158 billion cubic feet.

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Forex – Dollar little changed in quiet trade ahead of U.S. holiday-SapForex24

The dollar was little changed against a basket of the other major currencies on Monday, lacking direction ahead of the U.S. Presidents Day holiday, while political woes continued to weigh on the euro.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 100.86, almost unchanged for the day.

The dollar pushed higher against the yen, with USD/JPY rising 0.22% to 113.08, not far from Friday’s one-week lows of 112.61.

FOREX MARKET NEWS TODAY-SAPFOREX24
FOREX MARKET NEWS TODAY-SAPFOREX24

Investors remained cautious as hopes for changes to fiscal, tax and regulatory policy under the Trump administration have so far failed to materialize.

A solo presidential press conference on Thursday added to doubts over how effective the administration will be in enacting its economic agenda.

In Japan, data overnight showed that export growth slowed in January, at a time of growing concerns over the protectionist trade stance of President Trump.
The euro edged higher, with EUR/USD inching up 0.07% to 1.0621, after ending the prior session down 0.55%.

The single currency remained under pressure amid concerns that the French left could unite behind one candidate in the upcoming presidential elections, possibly knocking centrist and right nominees out of the race in the first round.

This possible alliance could increase the chances of anti-European Union Marine Le Pen winning the presidency in the second-round runoff.

EUR/JPY was up 0.31% at 120.11 after falling 0.94% on Friday.

Meanwhile, the pound gained ground, with GBP/USD climbing 0.38% to 1.2455. Sterling ended lower on Friday after an unexpected fall in UK retail sales added to fears that rising inflation is eroding consumer spending.

The Australian dollar edged higher, with AUD/USD up 0.12% to 0.7670, while the New Zealand dollar was little changed, with NZD/USD at 0.7179.

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Gold rises to 1-week high as dollar pulls back-SapForex24

Gold prices rose to a one-week high on Thursday, as the U.S. dollar pulled back from its strongest level in more than a month, supporting demand for the yellow metal.

Gold for April delivery on the Comex division of the New York Mercantile Exchange inched up $4.05, or about 0.3%, to $1,237.15 a troy ounce by 3:15AM ET (08:15GMT).

It rose to $1,238.00 during Asian hours, the strongest level since February 9. Prices gained $7.70, or about 0.6%, on Wednesday, snapping a four-session losing streak.
The dollar index was down around 0.2% at 100.92 in early London morning trade.

GOLD NEWS-COMEX MARKET NEWS WITH SAPFOREX24
GOLD NEWS-COMEX MARKET NEWS WITH SAPFOREX24

Upbeat U.S. inflation and retail sales data on Wednesday reinforced expectations of a near-term rate hike by the Federal Reserve, sending the index to 101.75, its strongest level since January 12.

On Tuesday, Fed Chair Janet Yellen raised market expectations for a March rate hike after saying it would be “unwise” for the central bank to wait too long. She did not give any additional insight on the timing of the Fed’s next rate hike in her second day of testimony to Congress on Wednesday.

Fed fund futures priced in around a 27% chance of a rate hike in March, according to Investing.com’s Fed Rate Monitor Tool, up from less than 10% at the start of the week. Odds of a June increase was seen at around 74%.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

On the data front, the U.S. will publish data on weekly jobless claims, housing starts, building permits and Philadelphia Fed manufacturing, all due at 8:30AM ET (13:30GMT).

Also on the Comex, silver futures for March delivery inched up 2.4 cents, or 0.1%, to $17.98 a troy ounce.

Meanwhile, platinum gained 0.5% to $1,015.20, while palladium tacked on 0.4%, to $789.42 an ounce.

Elsewhere in metals trading, copper futures slipped 1.1 cents, or about 0.4%, to $2.729 a pound.

Prices of the red metal pulled back from a 20-month peak of $2.822 touched on Monday as talks renewed between striking workers and management at Chile’s Escondida copper mine.

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Oil edges lower as investors await U.S. supply data | SapForex24

Oil prices were lower during European morning hours on Wednesday, after data overnight showed a massive build-up in U.S. crude supplies.

Crude oil for March delivery on the New York Mercantile Exchange shed 39 cents, or around 0.7%, to $52.82 a barrel by 3:15AM ET (08:15GMT), after gaining 27 cents, or 0.5%, on Tuesday.

Elsewhere, Brent oil for April delivery on the ICE Futures Exchange in London dipped 35 cents, or about 0.6%, to $56.63 a barrel. The global benchmark rose 38 cents, or nearly 0.7%, a day earlier.

After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by a whopping 9.9 million barrels in the week ended February 10.
The API report also showed a gain of 720,000 barrels in gasoline stocks, while distillate stocks rose 1.5 million barrels, highlighting continued builds in refined products seen as an overhang on the market.

Forex News- Crude Oil-SapForex24
            Forex News- Crude Oil-SapForex24

The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (15:30GMT) Wednesday, amid analyst expectations for a rise of 3.5 million barrels.

Gasoline inventories are expected to fall by 752,000 barrels while stocks of distillates, which include heating oil and diesel, are forecast to drop by 696,000 barrels.

Futures have been trading in a narrow range around the lower-to-mid-$50s over the past month as sentiment in oil markets has been torn between hopes that oversupply may be curbed by output cuts announced by major global producers and expectations of a rebound in U.S. shale production.

U.S. drilling activity has risen by almost 7% since mid-2016, taking it back to levels seen in late 2014, when strong U.S. crude output contributed to a collapse in oil prices.

The revival in U.S. drilling has raised concerns that the ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade as global producers look to reduce oversupply and support prices.

Latest data showed the group’s production in January declined by 890,000 barrels a day from the previous month to 32.14 million barrels a day. The drop indicates a 90% compliance level so far by producers who had agreed to curtail their output.

January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day to 32.5 million for the next six months.

Elsewhere on Nymex, gasoline futures for March declined 0.4 cents, or 0.3%, to $1.538 a gallon, while March heating oil lost 1.1 cents ,or 0.7%, to $1.626 a gallon.
Natural gas futures for March delivery jumped 5.0 cents, or 1.7%, to $2.955 per million British thermal units.

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Oil trapped in familiar range as traders weigh OPEC cuts, U.S. drilling | SapForex24

Oil prices were higher during European morning hours on Tuesday, but remained in a familiar trading range as market players continued to weigh the prospect of production cuts by major crude-producing nations against a rise in U.S. drilling.

Crude oil for March delivery on the New York Mercantile Exchange tacked on 38 cents, or around 0.8%, to $53.36 a barrel by 4:10AM ET (09:10GMT), after losing 93 cents, or 1.7%, a day earlier.

Elsewhere, Brent oil for April delivery on the ICE Futures Exchange in London inched up 50 cents, or about 0.9%, to $56.09 a barrel. The global benchmark lost $1.11, or nearly 2%, on Monday.

Comex Market News Today-SapForex24
   Comex Market News Today-SapForex24

Futures have been trading in a narrow range around the lower-to-mid-$50s over the past month as sentiment in oil markets has been torn between hopes that oversupply may be curbed by output cuts announced by major global producers and expectations of a rebound in U.S. shale production.

U.S. drilling activity has risen by almost 7% since mid-2016, taking it back to levels seen in late 2014, when strong U.S. crude output contributed to a collapse in oil prices.

The revival in U.S. drilling has raised concerns that the ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade as global producers look to reduce oversupply and support prices.

Latest data showed the group’s production in January declined by 890,000 barrels a day from the previous month to 32.14 million barrels a day. The drop indicates a 90% compliance level so far by producers who had agreed to curtail their output.

January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day to 32.5 million for the next six months.

Elsewhere on Nymex, gasoline futures for March rose 2.0 cents, or 1.3%, to $1.564 a gallon, while March heating oil added 1.5 cents ,or 1%, to $1.642 a gallon.

Natural gas futures for March delivery slumped 2.7 cents, or 0.9%, to $2.917 per million British thermal units, the lowest in 12 weeks, as forecasts continued to call for mostly warmer-than-normal weather in key regions across the U.S. for the rest of the winter.

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Forex – Dollar steady near 2-week highs vs. rivals -SapForex24

The dollar was steady near two-week highs against other major currencies on Friday, still supported by U.S. President Donald Trump’s most recent comments, although political uncertainty in the U.S. and Europe continued to weigh on market sentiment.

EUR/USD was little changed at 1.0661.

The dollar strengthened after U.S. President Donald Trump said on Thursday that he would announce the most ambitious tax reform plan since the Reagan era in the next few weeks.

Forex News Today-SapForex24
Forex News Today-SapForex24

During a meeting with airline CEOs on Thursday, Trump promised a “phenomenal” tax plan, without giving any specific details of the plan.

The comments came after the U.S. Department of Labor said initial jobless claims decreased by 12,000 to 234,000 in the week ending February 4. Analysts had expected jobless claims to rise by 4,000.

Elsewhere, USD/JPY climbed 0.40% to 113.70, the highest since February 1.
Japanese Prime Minister Shinzo Abe and Trump were set to hold a two-day summit in the U.S., starting on Friday. Trade and currency issues were expected to be in the spotlight.

Trump has accused Tokyo of using monetary policy to devalue its currency to boost exports.

The Australian and New Zealand dollars were higher, with AUD/USD up 0.33% at 0.7649 and with NZD/USD edging up 0.08% to 0.7193.

The two currencies were helped by earlier data showing that China’s imports climbed by an annualized rate of 16.7% in January, while exports rose 7.9%.
China is Australia’s biggest export partner and New Zealand’s second biggest export partner.

In separate news, in a phone call with his Chinese counterpart Xi Jinping, President Trump said he would honor the “One China” policy.

Trump had initially attracted criticism from China for saying that the U.S. did not necessarily have to stick to the “One China” policy.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 100.69, just off a two-week high of 100.75 hit overnight.

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