crude oil prices
The rupee soared 42 paise to 66.18 against the US dollar in early trade on increased selling of the US currency by exporters and banks along with higher foreign inflows following BJP’s booming win in Uttar Pradesh. Further, industrial production expanding by 2.7% in January also supported the rupee.
Meanwhile, Crude oil slides Near Rs 3200 Levels On Multi Commodity Exchange. WTI Crude oil has dropped below USD 50 for the first time since in nearly three months following heavy US inventories and selling pressure in major industrial commodities.
US commercial crude supplies have grown for nine consecutive weeks, reaching a record 528.4 million barrels last week, as per the US Energy Information Administration. WTI futures are currently trading just above USD 48 per barrel. MCX Crude dropped 0.77% yesterday to close around Rs 3,200 per barrel.
Gold is trying to edge up after the recent slip. A near 2-month low around USD 1200 per ounce seems to be working for the metal. MCX Gold closed down 0.45% at Rs 28, 238 per 10 grams yesterday, seeing another drubbing after the weekend.
Gold slipped on Monday as the dollar made stronger against the yen after Trump-Abe meet. Spot gold had slipped 0.31% to USD 1,230.22 per ounce, while US gold futures were down 0.36% at USD 1,231.3. The US dollar also found broad support in the wake of comments by Trump on Thursday that he planned to announce an ambitious tax reform plan in the next few weeks, relighting expectations for big tax cuts. The dollar index was firm at 100.820.
In other precious metals, spot silver was mostly unaffected at USD 17.95 per ounce, after touching USD 18, the highest since Nov. 11, 2016, earlier in the session.
Gold prices edged up today, aided by a sluggish U.S economic data and as uncertainty over the outlook for U.S. policy under President Donald Trump stoked safe-haven demand. Spot gold had grown 0.22% to USD 1,193.88 per ounce in early trade, while U.S. gold futures were up 0.45% at USD 1,193.70.
Economic growth in the U.S weakened by more than anticipated in the final three months of 2016, as per Friday update. The Department of Commerce says GDP increased by 1.9% in the Q4 following a 3.5% rise in the Q3. Economists had expected GDP to climb by 2.2%. However, Indian Gold Demand is expected to come back to normal levels in coming 3 years, as per latest update from the WGC.
Crude oil futures chop down Friday, projecting a weekly decline amid concern that OPEC will curtail supplies. WTI light sweet crude oil was down 1.2%, to end at USD 52.37 per bbl. Prices were down 3% for the biggest weekly decline in two months. A report from the Energy Information Administration indicated a build of 4.1 million barrels in crude oil inventories for January 6 week, immediately after the American Petroleum Institute had projected inventories were 1.5 million barrels higher in the period.
As per Energy Information Administration, commercial crude oil inventories starting January 6, stood at 483.1 million barrels, within seasonal limits, near the upper end. Refineries operated at 93.6 percent capacity, processing 17.1 million barrels of crude and generating 9.7 million barrels of gasoline and 5.3 million barrels of distillate daily. Gasoline inventories for the period were 5 million barrels higher than in the preceding week, after an 8.3 million-barrel build in the last week of 2016.