Oil extends gains, Brent rises above $75 after US inventories data
Oil prices rose on Wednesday, thanks to positive global demand outlook, and after a drop in the US crude inventories.
The Energy Information Administration reported today that the US crude inventories fell 6.4 million barrels to 417.4 million barrels during the past week, while analysts forecast a drop by 3.5 million barrels.
While the American Petroleum Institute reported yesterday in preliminary data that the US crude inventories fell 5.4 million barrels during the same period.
The International Energy Agency reported yesterday that it expects a strong recovery in global demand for oil during the fourth quarter of 2021.
As of 17:36 GMT, WTI crude October futures rose 2.9% to $ 72.5 a barrel.
Brent November futures rose 2.5% to $75.4 a barrel.
Dollar slips after weak data
The US dollar inched lower against most currencies on Wednesday, following the release of weak economic data.
Data showed that the US industrial production index rose 0.4% during the August, slightly lower than forecasts of 0.5%.
The CPI reading yesterday showed the largest slowdown in 6 month, which increased uncertainty about the Federal Reserve's next move.
The data increased uncertainty about the Federal Reserve's next move, especially about reducing the asset purchase program due to rising inflation and improving economic conditions.
The dollar index fell against a basket of major currencies by less than 0.1% to 92.5 points as of 17:49 GMT, after hitting a high of 92.6 points and a low of 92.4 points.
Gold falls below $1,800 despite falling dollar
Gold prices fell on Wednesday, and gave up the $1,800 barrier once again, despite the US dollar's drop and the release of weak economic data.
Data showed that the US industrial production index rose 0.4% during the August, slightly lower than forecasts of 0.5%.
The data increased uncertainty about the Federal Reserve's next move, especially about reducing the asset purchase program, as inflation seen the largest slowdown in 6 month.
The dollar index fell against a basket of major currencies by less than 0.1% to 92.5 points as of 17:53 GMT, after hitting a high of 92.6 points and a low of 92.4 points.
As of 17:53 GMT, gold spot prices fell 0.7% to $1,794.1 an ounce, after hitting a high of $1,808.5 and a low of $1,792.2.
Copper rises over 1% as dollar falls
Copper prices rose on Wednesday, as the US dollar fell against most currencies, while investors parse the US inflation data.
The US consumer price index rose by 0.3% in August, lower than forecasts of 0.4%.
The core reading (excluding food and fuel prices) rose by 0.1%, lower than forecasts of 0.3%.
The data increased uncertainty about the Federal Reserve's next move, especially about reducing the asset purchase program, as inflation seen the largest slowdown in 6 month.
Copper 3-month futures rose 0.5% to $9,486 per tonne in the London Metal Exchange.
The dollar index fell against a basket of major currencies by 0.1% to 92.5 points as of 13:37 GMT, after hitting a high of 92.6 points and a low of 92.4 points.
As of 13:36 GMT, copper December futures rose 1.1% to $4.37 a pound.