Oil declines to six-month low amid US demand concerns
Oil prices declined in European trade for another session with US crude hitting six-month lows while Brent plumbed three-week lows amid concerns about US demand.
Global Prices
US crude declined 1.3% to $89.65 a barrel, the lowest since February 18, while Brent shed 1.8% to $95.40 a barrel, the lowest since July 14.
US crude fell 3.2% on Wednesday, while Brent shed 2.9% after OPEC + decided to hike production next month.
US Stocks
Official US data showed crude inventories rose 4.5 million barrels to 426.6 million barrels last week, while analysts expected a drawdown of 1.4 million barrels.
Gasoline stocks rose 0.2 million barrels to 225.3 million barrels, while distillate stocks fell 2.4 million barrels to 109.3 million barrels.
US production steadied last week unchanged at 12.1 million bpd, the highest in two years.
OPEC Plus
OPEC + in association with Russia increased output by 100 thousand bpd in September, which supplies the market with much needed relief, however in a slower pace than previous months.
Gold prices rise to 4-week highs as dollar declines
Gold prices rose in European trade for another session, almost hitting four-week highs as the dollar loses ground against major rivals.
Haven demand is climbing on the precious metal as well amid concerns about global recession and US-China relations.
Prices Today
Gold prices rose 1.1% to $1,783 an ounce, after rising 0.2% yesterday, edging near four-week highs at $1,788.
The Dollar
The dollar index fell 0.2% today, resuming the decline to near four-week lows against major rivals, ahead of major US labor data today.
The data will offer strong clues on the US economy's health during the third quarter and will provide clues on the Fed's next move.
Estimates
Analysts expect gold prices to keep gaining ground amid ongoing short-term risks, even as US treasury yields rebound.
The SPDR
Gold holdings at the SPDR Gold Trust fell 2.9 tones yesterday to a total of 1,000 tones, the lowest since January 20.
