Oil driven lower by surprise US inventory builup
Oil prices fell on Wednesday after official data showed US crude stocks fell unexpectedly last week.
The Energy Information Administration reported a buildup of 3.5 million barrels in US crude stocks last week to a total of 441.8 million barrels, while analysts expected a drop to 1.8 million barrels.
Gasoline stocks fell by a million barrels to 224.7 million barrels, as distillate stocks fell by 3.2 million barrels to 103.6 million barrels.
US net crude imports rose by 422 thousand bpd in seven days ending May 9.
Otherwise, OPEC maintained its forecasts for global oil demand growth this year and the next at 1.3 million bpd.
But it cut forecasts for oil supply growth from the US and other non-OPEC+ producers from 900 thousand bpd to 800 thousand bpd.
On trading, Brent crude futures due in July fell 0.81%, or 54 cents to $66.09 a barrel.
US crude futures due in June fell 0.82%, or 52 cents to $63.15 a barrel.
Aussie drops after wages data
The Australian dollar fell against most major rivals on Wednesday following labor data.
Australian wages rose 0.9% in the first quarter of the year, above estimates of 0.8%.
On trading, the AUD/USD pair rose 0.7% as of 20:56 GMT to 0.6428.
Loonie
The Canadian dollar fell 0.3% against the greenback as of 20:56 GMT to $0.7155.
The US Dollar
The dollar index was little changed at 101.01 as of 19:43 GMT, with a session-high at 101.08, and a low at 100.2.
Fed Deputy Governor Philip Jefferson said that latest inflation data shows progress towards achieving the 2% inflation target.
However, he believes the outlook has become unclear due to the latest tariffs and their potential impact on prices.
Jefferson said he supported the decision to maintain rates unchanged at the Fed’s last meeting, for it remains “moderately restrictive” and suitable for future economic developments.
Jefferson continues to consider the labor market as strong, with first quarter GDP contraction reflecting distorted data due to higher imports.
Otherwise, the Washington Post reported that Russia and Ukraine will hold their first high-level talks since 2022 in Istanbul, under mounting western pressure to agree on a 30-day ceasefire as a step towards peace.
US State Secretary Marco Rubio is scheduled to join the talks to bolster the chances of a deal, while Ukrainian President Zelensky called for a summit meeting with Russian President Vladimir Putin.
Positive results from the talks would bolster investor confidence and risk appetite in the markets.
Gold drops 2% to below $3200 an ounce
Gold prices fell on Wednesday as the dollar stabilized against most major rivals, while trade tensions cooled as investors shunned safe havens.
The Washington Post reported that Russia and Ukraine will hold their first high level talks since 2022 in Istanbul, under mounting western pressure to agree on a 30-day ceasefire as a step towards peace.
US State Secretary Marco Rubio is scheduled to join the talks to bolster the chances of a deal, while Ukrainian President Zelensky called for a summit meeting with Russian President Vladimir Putin.
Positive results from the talks would bolster investor confidence and risk appetite in the markets.
Otherwise, the dollar index was little changed at 101.01 as of 19:43 GMT, with a session-high at 101.08, and a low at 100.2.
On trading, gold spot prices fell 2.1% as of 19:44 GMT to $3180 an ounce.
Wall Street climbs with support from the tech sector
US stock indices rose on Wednesday as the tech sector rebounded while trade tensions cooled between the US and China.
The Washington Post reported that Russia and Ukraine will hold their first high level talks since 2022 in Istanbul, under mounting western pressure to agree on a 30-day ceasefire as a step towards peace.
US State Secretary Marco Rubio is scheduled to join the talks to bolster the chances of a deal, while Ukrainian President Zelensky called for a summit meeting with Russian President Vladimir Putin.
Positive results from the talks would bolster investor confidence and risk appetite in the markets.
On trading, Dow Jones rose 0.2% as of 15:29 GMT to 42219 points, while S&P 500 rose 0.1% to 5891 points, as NASDAQ added 0.4% to 19094 points.