Oil prices rebound as US crude stocks tumble
Global oil prices rose in American trade on Thursday for the first time in four sessions away from one-week lows after US crude stocks fell according to official EIA data.
The OPEC+ alliance is convening in the weekend to discuss latest market developments, amid expectations it’ll delay scheduled production hikes in January to help stabilize prices.
Prices
US crude rose 0.75% today to $69.25 a barrel, with a session-low at $68.30.
Brent rose 0.8% to $72.92 a barrel, with a session-low at $71.89.
On Wednesday, US crude lost 0.3%, the third loss in a row, approaching a week low at $68.07, while Brent shed 0.2%, approaching November 18 lows at $71.66.
US Stocks
The Energy Information Administration reported a drawdown of 1.8 million barrels last week to 428.4 million barrels, while analysts expected a drop of 0.5 million barrels.
Gasoline stocks rose by 3.3 million barrels to 212.2 million barrels, as distillate stocks rose by 0.4 million barrels to 114.7 million barrels.
US Output
US crude output rose by 300 thousand bpd to a total of 13.5 million bpd, a record high.
OPEC+
The OPEC+ alliance is convening in the weekend to discuss the latest market developments, and is highly expected to delay a scheduled production hike in January.
The group is likely to issue a semi-unanimous call to delay the unwinding of voluntary production cuts amounting to 2.2 million bpd until the first quarter of 2025, in order to support prices.
US dollar recovers amid thin Thanksgiving trading
The US dollar rose in European trade on Thursday and held its ground above two-week lows against a basket of major rivals amid thin Thanksgiving trading.
US 10-year treasury yields plumbed four-week lows, with markets still expecting the Federal Reserve to cut interest rates by 25 basis points in December.
The Index
The dollar index rose 0.4% today to 106.42, with a session-low at 106.02.
On Wednesday, the index lost 0.8%, the second loss in three days, hitting two-week lows at 105.86 as US yields tumbled.
US Yields
US 10-year treasury yields plumbed four-week lows at 4.227%, pressuring the greenback.
US Rates
A recent string of US data showcased the flexibility of the world’s largest economy and the downward path for inflation.
According to the Fedwatch tool, the odds of a 0.25% Federal Reserve interest rate cut in December stood at 68%.
The odds will develop and change as more US labor and inflation data are released, and as Fed officials speak and hint about future policies.
Gold moves in a positive zone amid thin trading
Gold prices rose in European trade on Thursday on track for the third profit in a row, amid thin trading that dominates most markets due to the US Thanksgiving holiday.
Markets still expect the Federal Reserve to cut interest rates in December as US inflation tapers off, with traders waiting for more data and Fed remarks before the December 17 policy meeting.
Prices
Gold prices rose 0.4% today to $2646 an ounce, with a session-low at $2620.
On Wednesday, gold rose 0.1%, the second profit in a row, as both the dollar and US treasury yields lost ground.
US Rates
A recent string of US data showcased the flexibility of the world’s largest economy and the downward path for inflation.
According to the Fedwatch tool, the odds of a 0.25% Federal Reserve interest rate cut in December stood at 68%.
The odds will develop and change as more US labor and inflation data are released, and as Fed officials speak and hint about future policies.
SPDR
Gold holdings at the SPDR Gold Trust fell 0.86 tons yesterday to a total of 878.55 tons, away from November 7 highs at 879.41 tons.
Euro edges down before Spanish, German inflation data
Euro fell in European trade on Thursday against a basket of major rivals, giving up a week high against the US dollar on profit-taking as investors await important Spanish and German inflation data for November.
The data comes a day before the release of inflation data for the whole eurozone, which will help determine the policy decision by the ECB at the December meeting.
The Price
The EUR/USD pair fell 0.2% today to $1.0547, with a session-high at $1.0569.
The pair closed up 0.75% on Wednesday, the second profit in three days, and the largest since August 2, marking a week high at $1.0587.
The euro also marked strong gains after bullish remarks by an ECB official.
European Central Bank executive member Isabel Schnabel told Bloomberg on Wednesday that interest rate cuts should be gradual and move to a neutral position.
Following the remarks, the odds of a 0.25% interest rate cut by the ECB in December tumbled from 90% to 65%.
Now investors await important inflation data from both Spain and Germany later today to gather more clues.
And tomorrow, inflation data for the whole eurozone will be released.