Oil prices rose on Wednesday, ahead of the latest US weekly inventories data, while gold consolidated above the $900 an ounce level, trying to stabilise after its recent correction.
In energy markets, ICE April Brent rose $1.05 to $44.750 a barrel, moving between a low of $43.10 and a high of $44.85.
EDITOR’S CHOICE
Silver outshines gold for investors - Feb-24Recession reduces demand for gas in winter - Feb-18Congo hints at shelving mine deal talks - Feb-17Lex: China/Russia oil deal - Feb-18Farmers see good times in spite of recession - Feb-16Nymex April West Texas Intermediate rose $1.63 to $43.28 a barrel.
US inventories data due out later in the session were expected to show a rise of 1.2m barrels in crude stocks last week while distillate inventories (including heating oil) were seen falling 700,000 barrels and gasoline stocks were forecast to drop 800,000 barrels, according to a poll of analysts.
Nymex April RBOB unleaded gasoline traded 2.8 cents higher at $1.3475 a gallon while Nymex April heating oil added 1.7 cents at $1.1970 a gallon.
Dealers were expected to pay attention to US crude stocks at Cushing, Oklahoma, the delivery point for WTI. Cushing stocks unexpectedly fell 400,000 barrels to 34.5m barrels in the week to February 20, the first decline in eight weeks.
Traders will be looking out for further evidence of a recovery in US petrol demand and also for any signs that Opec cuts have tightened the market. US crude imports have been weak recently, averaging 8.8m barrel a day in the week to February 20, which dealers have seen as an indication that Opec production cuts have tightened supplies.
Gold traded at $912 a troy ounce, moving between a low of $906.90 and a high of $923, after ending trading in New York on Tuesday at $915.25.
Investment demand for gold has slowed with inflows into exchange traded funds coming to an abrupt halt last week. This has led to increased uncertainty about the market’s outlook as other demand drivers, such as jewellery consumption and industrial usage, remain weak.
