Crude Oil advance on upbeat API update

September 9, 2016

Crude Oil started Thursday on an upbeat note due to the API weekly report signaling about a sizzling drawdown in commercial US stockpiles and gyrating rumors that Oil producers will soon hit a deal on output cap.

WTI and Brent, the primary crude benchmarks traded on NYMEX and ICE exchanges, soared 2%В after an API report released after the end of trading session on Wednesday showed surprising change in US crude inventories. Crude oil supplies fell 12,1M barrels in the week ending September 2, the biggest drawdown since 1985, gasoline stockpiles reduced 2.3M barrels, distillates including diesel rose 944K barrels.

Traders took the data with caution, bracing for an EIA update with its official crude inventory estimate.В The release was shifted to Thursday due to Labor Day in US celebrated Monday.

Crude oil market gained footing after Saudi Arabia and Russia agreed to split the difference to seek market rebalance with Iran backing their initiative. Output-freeze speculations continue to be a key driver for price growth ahead of the OPEC meeting in Algeria held 26-28 September. Nonetheless, market analysts cast illusions that Oil producers will reach an agreement to cap output amid reviving shale supplies from the US.

Gold added a quarter of a percent after a steep rally fueled by gloomy US Non-Mfg. PMI, XAU/USD rose 0.25% to $1,352.55 as of 12:38 GMT ahead of uncertainty related to ECB news.

EUR/USD raised half a percent as traders expect ECB will put off additional easing amidst economic recovery in the EU and muted Brexit risks.В Mario Draghi is expected to announce an update on QE which volume is expected to remain unchanged. The Pound resumed its advance after retreating from two-month resistance at 1.34 on Tuesday. The Japanese Yen rose slightly on strong GDP and Trade Balance figures, beating forecasts and hawkish comments from a BoJ official stating the Central Bank has a vast play for cutting rates deeper.

Chinese exports & imports and Trade Balance figures printed higher, official data shows. Exports slowed decline while imports ceased decline completely, gaining 1.5% in August comparing to the same period of last year. Trade balance fell short of projections while Foreign Direct Investment rose 7.9% instead of expected 4.5% signaling about growing appeal for global investors.

Canadian Central Bank left interest rate without changes at 0.5% yesterday, signaling the economy is strong enough to develop without stimulus, USD/CAD surged but pared advance later on Thursday.

Publication source
Tickmill information  Tickmill reviews

February 24, 2017
Gold surges to major $1250 resistance as uncertainty prevails
Gold surged Thursday on a breakout of its previous consolidation to hit and slightly exceed major technical resistance at $1250, a level not seen since early November...
February 24, 2017
Dollar falls as peso and gold rally
The U.S. dollar was the weakest currency yesterday as surprisingly, the Mexican peso rallied, rising 1.22% over the day against the greenback...
February 23, 2017
U.S. dollar muted to Fed minutes
The U.S. dollar index was flat yesterday after the Federal Reserve published the meeting minutes from the January 31 -February 1 monetary policy meeting...

OctaFX Rating
Grand Capital Rating
FX Giants Rating
Exness Rating
Larson&Holz IT Ltd Rating
FIBO Group Rating

GTOptions Rating
Dragon Options Rating Rating
OptionRally Rating
Banc De Binary Rating
TropicalTrade Rating