Commodities: Crude, Nat Gas erase gains following inventory data

Crude Oil and precious metals rose in morning pit trade following the ECB's decision to leave rates unchanged and Mario Draghi's confirmation of Wednesday's reports of an ECB plan to buy bonds with maturities shorter than 3 yrs.

Action also came on a number of US economic data. Crude Oil roseto its session high of 97.71 on better-than-anticipated inventory data that showed a draw of 7.426-M bbls when a draw of 5.0-M bbls was expected. But, prices pulled-back and Crude Oil inched lower for the remainder of the session. It tapped a session low of 95.19 just before closing 0.2% higher at 95.59 bbl.

Gold came off its pit session low of 1698.80 trading up to a session high of 1711.90. It pulled-back slightly in afternoon action but still settled 0.6% higher at 1705.00 oz. The precious Yellow metal rose to its highest level since March, tapping a high of 1716.90 oz in overnight trade.

Silver dipped to a session low of 32.38 but quickly advanced to a session high of 32.99. Like Gold, it pulled-back in afternoon action and settled with a 1.1% gainer at 32.69 oz.

Nat Gas rallied to its session high of 2.87 per MMBtu in reaction to stronger-than-expected inventory data that showed a build of 28 bcf when a build of 30 bcf was anticipated. The move was short-lived as prices quickly fell into the Red. Although it recovered some gains in late morning and afternoon action, a sell-off heading into the close, Nat Gas settled 0.7% lower at 2.78 per MMBtu.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.