Crude prices were little changed after the EIA crude oil inventory report showed stockpiles are declining again as refiner activity picked up. The Strategic Petroleum Reserve saw a big draw of 6 million barrels, with crude stocks now at the lowest levels in over thirty years.
Gasoline demand was a little soft, but energy traders are not too worried that we are seeing crude demand destruction just yet, even as gas prices are making record highs. The beginning of the summer driving season is here, and the pent-up demand for travel is so high that Americans will travel regardless of the price at the pump.
The oil market remains tight, and crude prices seem to continue to be supported.
Gold Pares Losses After FOMC Minutes
Gold prices pared losses after the Fed’s Minutes signaled they are not considering larger rate hikes. The Minutes included a boosting of the inflation forecast, which could be viewed as hawkish. Still, risks are growing in parts of the Treasuries and commodities markets, which could derail much more aggressive action.
Given today’s strong dollar, gold is ready to consolidate, but a bearish outlook seems unlikely.