Crude Oil
West Texas Intermediate crude traded above $102 on concern the clash over Ukraine between the West and Russia may intensify. Brent neared $109. WTI ranged from $101.20 to $102.08 after falling to a two-week low yesterday. Ukraine edged closer to a new round of hostilities after the government in said it’s resuming operations to oust militants from eastern cities and Russia pledged to defend its citizens in the neighboring country. U.S. crude supplies rose last week for the 13th time in 14 weeks, “The market is trying to balance the risk in Ukraine and the possibility that we are going to see another increase in inventories,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “It’s hard to get too excited about WTI when you have so much oil in storage.” U.S. crude inventories probably grew by 3 million barrels in the week ended April 18, the Energy Department’s statistical arm. Supplies increased by 519,000 barrels, the American Petroleum Institute reported yesterday. Crude trade at 101.50.
Gold
Gold rebounded from a 10-week low as falling U.S. home sales triggered concern that the economy still faces challenges, boosting demand for haven assets. Sales of new homes dropped to the lowest in eight months, Commerce Department data showed today. Gold has rebounded 6.8 percent this year on concern that U.S. growth was faltering and as tension escalated in Eastern Europe. Ukraine resumed operations to oust militants from eastern cities as the U.S. said 600 troops will be sent for exercises in four countries bordering Russia. Gold seems to be getting some bids after the disappointing home-sales data,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “Renewed tension in Ukraine is also giving it some support.” Gold was little changed.
