News Column

Coutts- Commodities: Crude rallies after bigger than expected draw on supplies

May 22, 2014

ENP Newswire - 22 May 2014

Release date- 22052014 - A larger than expected draw on crude sent crude oil futures above 104 dollars a barrel on Wednesday, confounding forecasts of a small increase. Crude for delivery in July advanced $1.74 or 1.7% to $104.07 a barrel on the New York Mercantile Exchange, a one-month high.

The US Energy Information Administration said crude supplies fell 7.2m barrels for the week ended May 16th.

Gasoline supplies climbed by 1m barrels, more than the expected rise of 150,000 barrels.

Distillate stockpiles, which include heating oil, rose by 3.4m barrels, data from the EIA showed.

They were expected to fall by 250,000 barrels. The unexpectedly large draw on crude supplies pushed futures higher on hopes of stronger than expected demand for oil products.

Oil traders also kept an eye on the latest minutes from the Federal Reserve's latest meeting for any indication on the outlook for energy demand. The minutes said Fed officials looked at several ways of tightening of monetary policy but no decisions were made on which approach should be used. European benchmark, Brent crude futures rose 86 cents or 0.8% to $110.55 a barrel on the ICE Futures Europe exchange. Among precious metals, gold snapped a two-day winning streak, as investors took a breather ahead of April's minutes. Gold for June delivery fell $6.50 or 0.5% to settle at $1,288.10 on the Comex. CJ

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Source: ENP Newswire

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