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[Economics] Gold fell and oil rose after data on US crude inventories fell


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Oil prices rose slightly today, Wednesday, after data showed a larger-than-expected decline in US crude inventories last week; On fears of a decline in China's demand for fuel in the midst of tightening Covid-19 restrictions, while gold recorded a decline in anticipation of the monetary policy meeting of the Federal Reserve.


Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford


Brent crude futures rose 0.3% to $88.63 a barrel at 07:19 UTC, while US West Texas Intermediate crude futures rose 0.3% to $81.20 a barrel.

The two benchmark contracts rose by about 1% yesterday, Tuesday, after the UAE, Kuwait, Iraq and Algeria reinforced statements made by the Saudi Energy Minister, in which he said that the “OPEC Plus” group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is not considering increasing oil production.

OPEC Plus meets to review production on the fourth of next December.

Data from the American Petroleum Institute showed a decline in US crude stocks by about 4.8 million barrels in the week ending November 18; This is according to market sources.

Gasoline stocks fell by about 450,000 barrels, while distillate stocks rose by about 1.1 million barrels, according to sources who asked not to be identified.


Oil - black gold


Oil - black gold
Oil prices rose slightly after data on falling US oil inventories (Shutterstock)
Gold dip
Gold moved in a limited trading range today, Wednesday, as investors await the statement of the monetary policy meeting of the Federal Reserve (the US Central Bank), which may provide indications regarding further raising interest rates.

By 06:47 UTC, spot gold prices fell 0.1% to $1737.79 an ounce, while there was little change in US gold futures contracts, and they recorded $1738.20 an ounce.

The statement of the US Central Bank's Monetary Policy Committee meeting, which was held on the first and second of November, is expected to be announced, and investors are also expected to see indications from durable goods data and US jobless claims.

The US central bank raised interest rates for the fourth time in a row by 75 basis points this month.




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