Oil Slips on Stockpile Rise, Gold Steady
The oil commodity fell from three-month highs after reports showed a build in US crude and gasoline stockpiles. This report also triggered fears of oversupply yet again.
New York futures lost 1%, although prices stayed higher than $60 per barrel after jumping up 3.7% in recent days.
The bullishness came from news of a preliminary trade deal between Washington and Beijing.
People from the American Petroleum Institute showed said inventories rose by 4.7 million barrels last week. Meanwhile, gasoline stockpiles increased by 5.6 million barrels, according to sources.
If true, this would be the most significant gasoline build since January in commodity news. The official government data will come out later in the week.
Crude oil has rallied nearly 10% this month. The boost in price came as the Organization of Petroleum Exporting Countries and its allies agreed to deeper output cuts.
On the other hand, forecasts said that there would be increases in production in non-OPEC countries. As a result, price gains may be low.
This data comes amid the positive news of the US and China, reaching a “phase one” deal.
West Texas Intermediate crude for delivery in January lost 48 cents or 0.8%. The commodity traded $60.46 per barrel on the New York Mercantile Exchange.
Meanwhile, Brent for delivery in February lost 31 cents to $65.79 per barrel on the ICE Futures Europe Exchange.
Gold Commodity Firm amid Fresh Brexit Uncertainty
Apart from oil, gold is another valuable commodity.
Gold prices remained the same in spite of new Brexit risks. US data came in stronger than expectations, boosting risk appetite.
Gold futures for delivery in February were the same at $1,480.85 per ounce. The precious metal reached a one-week high at $1,484.85 in the early session.
Commodity news also focused on the UK Prime Minister, who said he would amend the Brexit bill to ensure there would be no transition period extension.
However, the same hard-line stance also revived the Brexit outlook uncertainties.
UK PM Boris Johnson wants to have a comprehensive free trade deal with the EU before the transition deadline on December 31. This demand would leave EU negotiators to draw up a trade agreement.
The news pummelled the British pound but offered substantial support to the safe-haven gold.
Elsewhere, US housing starts moved close to its highest in 10 years. The growth of industrial production also exceeded expectations.
