NewsPreviousForecastAnalysisGold has risen above the $74 threshold in Asian trading, being hauled by the rise in Chinese exports and declining American reserves.
Oil futures are climbing for the fourth consecutive day, while reports revealed a 4.4% incline in Chinese oil imports compared to those of last month, reaching 17.84 million metric tons. Chinese exports grew by 48.5% on a yearly basis last month.
The EIA report showed a 1.8 million barrel drop in oil reserves, compared to the previous 1.9 million barrels though projections pointed to 1.1 million barrels decline. Reserves compound to a current 361.4 million barrels, still above the average for this time of the year. Motor gasoline reserves were steady at 219.0 million barrels while Distillate fuel inventories which include heating fuel, increased by 1.8 million barrels; both remain above the medium term average for this time of the year.
Rising consumption demand due to the start of the summer season could be a sign of the decline in the oil reserves of the world's biggest oil consumer. Nonetheless, tension is still growing around the Mexican Gulf oil spill, which resulted from an explosion on an offshore British Petroleum rig. BP is under great pressure and criticism from the American government including President Obama, over the way the company is handling the emergency repair works in order to stop the dreadful oil leak in the gulf.
Oil has gained from dollar's decline yesterday, where the euro even pared the losses as the pair is trading at 1.2044 after dropping to an all time low of 1.1900 at the start of the week.
Investors are inclining into buying high return basic commodities with the improving sentiment in the markets, after American fundamentals assured the improvement in the world's largest economy, as well as rapid expansion in China who is seen as the catalyst in the global economic recovery.
Though all major indicators point to significant improvement in Asia and America, fear around the European woes still continue to linger after Greece ignited the sovereign debt crisis.
Oil futures for July settlement opened yesterday at $72.45 and reached a high of $74.92 and a low of $72.00 and are closed at $72.85.
S&P GSCI closed at 488.84 after raking in 10.57 points, while RJ/CRB added 2.98 points to close at 253.06.
In NYMEX trading, at exactly 02:43 EST, motor gasoline futures have declined by $0.260 to $203.710, while heating futures are trading around $201.00 pre gallon up by $0.040 and gas has ascended by $0.032 to $4.709 pre 1000 cubic feet. In London, Brent climbed by 0.020 to 74.290.
Crude oil futures have opened today at $73.80, reaching highs of $74.70 and lows of $73.70 and are currently trading at $74.50 per barrel.