Crude Oil
Crude oil prices dipped early in Asia on Thursday with exports from Libya and relative quiet in Iraq keeping sentiment subdued. Libyan rebels who have seized eastern oil ports have agreed to reopen terminals in Es Sider and Ras Lanuf, which should add 500,000 barrels per day of crude back into the global energy market. The news sent futures falling despite bullish supply data out of the U.S. The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 3.2 million barrels in the week ended June 27, compared to expectations for a decline of 2.3 million barrels. Total U.S. crude oil inventories stood at 384.9 million barrels as of last week. The report also showed that total motor gasoline inventories decreased by 1.2 million barrels, compared to forecasts for a gain of 0.4 million barrels, while distillate stockpiles rose by 1.0 million barrels, above expectations for an increase of 0.8 million barrels.
Gold
Gold prices eased in Asia Thursday on profit taking, but reamin supported by expectations of continued low interest rates in the United STates and globally. Corporate bond spreads have been falling as have volatility indicators such as the VIX, which may indicate that investors are taking on risks despite the possibility of facing losses for which they might not be fully prepared, Yellen said in a speech at the International Monetary Fund. Still, policy will remain accommodative, as Fed policies aren't a panacea to deal with financial risks such as asset bubbles. Her words sent gold prices rising, as loose monetary policy bolsters the precious metal's appeal as a safe-haven hedge. Still, better-than-expected jobs numbers capped gains by reminding investors that the Fed will tighten policy one day, likely within a year after it winds down its monthly bond-buying stimulus program.
