Oil hits 2-week high ahead of EIA's weekly report
Oil prices continued to rise as the US market opened on Wednesday, resuming gains after taking a pause yesterday, following a large drop in the US crude inventories according to the API's preliminary data, and ahead of the EIA's official report.
US crude rose 1.0% to the highest since July 15 at $72.57 a barrel, after opening at $71.88, and hit a low at $71.84, and Brent crude rose 0.75% to $75.28 a barrel, after opening at $74.73, and hit a low at $74.60.
The US crude lost 0.4% yesterday, and Brent crude fell 0.3%, in the first daily loss in 5 days, due to global demand concerns.
The American Petroleum Institute reported 4.7 in preliminary data that the US crude inventories fell 7.98 million barrels during the week ending July 23, while analysts forecast a drop by 2.5 million barrels.
The total US commercial inventories fell to 441.4 million barrels, which is the lowest level since the week ending February 7, 2020, in a positive sign of the US domestic demand.
The US Energy Information Administration's official data will be released later today, amid forecasts for inventories to drop by 2.6 million barrels.
Dollar consolidates above 2-week low with Fed's decisions in focus
The US dollar turned higher against a majority of rivals on Wednesday, and rebounded from a 2-week low, amid anticipation of the US Federal Reserve's decisions.
The dollar index rose more than 0.1% to 92.60 points, after opening at 92.45 points, and hit a low of 92.40 points.
The US dollar lost 0.2% yesterday, in the second straight daily loss, and hit a 2-week low at 92.31 points.
The US dollar is attracting demand amid expectations that the Federal Reserve’s meeting will deliver insight on the near tightening of the US monetary policy.
The Federal Open Market Committee will decide today on the monetary policy, expected to maintain rates at near zero, the and the assets purchases program at $120 billion.
At 18:00 GMT, the Federal Reserve's interest decision will be released, and Fed Chair Jerome Powell will deliver a speech at 18:30 GMT.
The market expects that monetary policy tools will remain unchanged, but focus is on Jerome Powell's statements after the meeting, which are expected to provide insight on the future of the bond-buying program and interest rates.
Gold consolidates above $1,800 ahead of Fed's decision
Gold prices rose on Wednesday, extending gains for the second straight day, rising above the $1800 barrier, as the US dollar fell against a majority of rivals, and ahead of the Federal Reserve’s decisions.
Gold prices rose 0.5% to $1,807.38 an ounce, after opening at $1,798.23, and hit a low at $1,797.97.
Gold closed higher by 0.1% yesterday, within recovery from a 2-week low at $1,789.68 an ounce.
The dollar index fell 0.1% today, to head for the third straight loss against a majority of rivals, which lifts demand for dollar-denominated metal prices.
The greenback is falling due to risk aversion ahead of the Federal Reserve’s decisions.
The Federal Open Market Committee will decide today on the monetary policy, expected to maintain rates at near zero, the and the assets purchases program at $120 billion.
At 18:00 GMT, the Federal Reserve's interest decision will be released, and Fed Chair Jerome Powell will deliver a speech at 18:30 GMT.
Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since May 13 at 1,025.64 metric tonnes.
Oil jumps to 2-week high after large drop in US inventories
Oil prices rose on Wednesday, resuming gains after taking a pause yesterday, following a large drop in the US crude inventories according to the API's preliminary data, and ahead of the EIA's official report.
US crude rose 1.0% to the highest since July 15 at $72.57 a barrel, after opening at $71.88, and hit a low at $71.84, and Brent crude rose 0.75% to $75.28 a barrel, after opening at $74.73, and hit a low at $74.60.
The US crude lost 0.4% yesterday, and Brent crude fell 0.3%, in the first daily loss in 5 days, due to global demand concerns.
The American Petroleum Institute reported 4.7 in preliminary data that the US crude inventories fell 7.98 million barrels during the week ending July 23, while analysts forecast a drop by 2.5 million barrels.
The total US commercial inventories fell to 441.4 million barrels, which is the lowest level since the week ending February 7, 2020, in a positive sign of the US domestic demand.
The US Energy Information Administration's official data will be released later today, amid forecasts for inventories to drop by 2.6 million barrels.