Oil prices have risen today, Wednesday, and they were slightly at the lowest level in 4 years, which I recorded recently at a time when investors have focused them into possible trade talks between the United States and China and indications of US production decline.
Brent crude futures increased 32 cents per barrel or 0.51% to $ 62.47 in the latest transactions, and US West Texas Intermediate crude rose 45 cents, or 0.76% to $ 59.52 a barrel.
The two crudes fell to the lowest level in 4 years in recent times after the OPEC Plus alliance decided to accelerate the pace of production, which strengthened fears of the exhibit at a time when the American customs duties increased from the demand concerns.
“There were news about the start of commercial talks between the United States and China after Brent days to rise … although negotiations will help improve the morale of the oil market, we will need to see remarkable progress in reducing customs duties to improve demand expectations,” said ING.
The drop in oil prices in the past few weeks has prompted some American energy companies to declare discounts in drilling operations, which analysts said would support prices over time as it will reduce American production.
Sources in the market, quoting the data of the American Petroleum Institute on Tuesday, said that crude stocks fell by 4.5 million barrels in the week ending May 2.
Prices also gained some support from indicators on improved demand, and consumers in China increased spending at Labor Day celebrations and with the return of work to the markets after a 5 -day holiday.
gold
Gold prices fell today, Wednesday, amid investors awaiting the monetary policy decision issued by the Federal Reserve (US Central Bank) later today, at a time when he was optimistic about the holding of possible trade talks between the United States and China asking for safe haven assets.
Gold fell in instant transactions 1.21%, recording $ 3388.5 an ounce in the latest transactions, and the yellow metal rose by 3% in the previous session.
American gold futures decreased by 0.73% to $ 3397.70.
“It seems that gold is declining in light of a general movement in the market towards the demand for risk … which may reflect optimism in light of the existence of indications that the United States and China may seem real trade negotiations,” said Elijah Spavak.
The market focus is on the meeting of the American Open Market Committee later today, with expectations to keep interest rates unchanged.
Speak expected that the meeting would not disclose much of what is in the bank’s quarrel so that it remains as much as possible as possible at a time when he is still trying to explore what the trade war means for economic growth and inflation rates.
Gold is usually considered a hedging tool in times of political and economic ambiguity, as it refreshes when interest rates decrease.
As for other precious metals, its performance came as follows:
- Silver in instant transactions fell 1% to $ 32.9 an ounce.
- Platinum settled at 988.76.
- Palladium rose 0.23% to $ 980.
Source : Reuters + CNBC + Websites
