Oil Prices Fall Below Expectations
04/07/2019

Following a report from the Energy Information Administration (EIA) stating a set of bearish US crude inventories data, oil prices in Asia went down during early morning trades on Thursday.

At 04:08 GMT, both the International Brent Oil Futures and U.S. Crude Oil WTI Futures fell by 0.7% to $63.38 and $56.96 respectively.

According to the report from the EIA, crude stockpiles were down by 1.1 million barrels as of June 28. The figures are well below the expectations of 2.96 million barrels.

This report came after the American Petroleum Institute showed in a report released on Tuesday that inventories fell by more than 5 million barrels last week.

In spite of the fact that OPEC and its allies agreed to continue to cut production until March 2020, oil prices saw minimal changes because of the uncertainties in regards to the US-China trade discussions and low demand.

Gold Prices Remain Constant

On Thursday in Asia, as the US Federal Reserve hinted another rate cut and stock markets weighed some gains, gold prices remained relatively steady with minimal changes.

At 05:31 GMT, Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by 0.06% to $1,421.7 per troy ounce.

Because the markets were forecasting on interest rate cuts at the US Federal Reserve and the European Central Bank, stocks and bonds traded higher. As a result, making the three major stock indexes to close at record highs; thus adding pressure on gold.

As interest rate decreases, investors usually opt for gold because the cost to hold the precious metal decreases vis-a-vis interest-bearing assets such as bonds.

Moreover, a weaker dollar against the yen has also been cited as supportive for the yellow metal.

Bitcoin Continues Its Upward Trend

On Thursday morning, Bitcoin continued its upward trend and now crossed the $11,000 level after it fell by more than $4,000 from its recent high of $13,929.8 a week ago.

At 04:41 GMT in the Asian market, Bitcoin was up by 3.9% to $11,686.8.

However, Ethereum, Litecoin and Litecoin slipped. Ethereum was down by 0.6% while Litecoin and XRP fell by 1.1% and 1.2% respectively.

Bitcoin gained more than 200% at one point this year after the announcement of Facebook’s plan to launch its own cryptocurrency, Libra.

Last Thursday Bitcoin started to lose value and reached as low as $9,728.5. However, today it surged back above $11,000 mainly because of the unstable US global ecosystem.

Financial Events to watch for today

  • 01:30 GMT – Retail Sales (MoM) (May)[AU]