Crude Oil
West Texas Intermediate dropped to a five-week low and Brent declined after U.S. crude inventories advanced to a record and fuel stockpiles grew. slipped 0.3 percent in New York. Crude stockpiles gained 1.7 million barrels last week to 399.4 million, the most since the Energy Information Administration began reporting weekly data in 1982. China’s manufacturing grew report showed. WTI surged to a five-month high on March 3 on tension between Russia and Ukraine. “It’s hard to argue for $100 WTI with oil supplies about as high as they’ve ever been,” said Michael Lynch, the president of Strategic Energy & Economic Research (SENR) in Winchester, Massachusetts. “Although there’s increasing tension in Eastern Europe, the oil market is moving on the supply-demand balance at the moment. WTI should soon be trading in the mid-$90s.” WTI for June delivery fell 32 cents to $99.42 a barrel on the New York Mercantile Exchange. It was the lowest settlement since March 25. WTI slipped 1.8 percent in April, the biggest monthly decline since November.
Gold
Gold headed for a weekly loss after the Federal Reserve pressed on with cuts to stimulus amid signs of a recovery in the U.S. and holdings in the largest bullion-backed exchange traded fund contracted to a five-year low Tapering has “driven the gold price lower for some time,” David Lennox, a resource analyst at Fat Prophets in Sydney, said in an interview on Bloomberg Television today. “Until we see that program actually come to completion, it will probably still put downside pressure on the gold price. Assets in the SPDR Gold Trust, the biggest bullion-backed ETP, fell 0.3 percent to 785.55 metric tons yesterday, the lowest level since January 2009, according to data on its website. Outflows totaled 25.1 tons last month, more than offsetting combined gains of 19.9 tons in February and March.” Gold fell to 1285.
