Commodities: Petroleum Products and Gold Prices Decline

Earlier, petroleum products such as U.S. Crude Oil WTI Futures soared 3.1% to $52.69. International Brent Oil Futures also grew by 2.9% to $57.88.

It was last Thursday when oil prices recovered after tumbling almost 5% overnight on growing crude stockpiles.

The reports of possible producer actions supported the oil prices into boosting oil markets.
The U.S. Energy Information Administration in its weekly oil inventory report announced prices dropped overnight.

In addition, a news report said the world’s top exporter was in contact with other producers and is processing something that will break the slide in prices.

Meanwhile, crude stockpiles were better by 2.39 million barrels in the week to August 2, and an unnamed official from Saudi Arabia was mentioned.

Petroleum products forecast contrasted with the stockpile draw of 2.85 million barrels after collapsing of 8.5 million barrels in the previous week.

Unexpectedly surging by 4.44 million barrels were the gasoline inventories as reported by the EIA. This is in contrast to anticipations of drawing over 0.72 million barrels.

The distillate stockpiles rose by 1.53 million barrels, in comparison to forecasts of a 0.48 million gain.

The world’s biggest oil importers are China and the U.S.

Meanwhile, the Sino-U.S. ongoing trade war is expected to affect oil prices.

The expectations of a quick trade deal diminished when the U.S. slapped additional tariffs on more Chinese goods.

Tensions escalated further after the People’s Bank of China reportedly devaluated the yuan this week, prompting Washington to label Beijing as a currency manipulator.

Gold Prices Plunged

Gold prices declined on Thursday in Asia, as global stock markets recovered on a stronger-than-expected Chinese yuan daily fixing level.

Gold futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, fell 0.5% to $1,512.50.

Global stocks increased yesterday after the People’s Bank of China (PBOC) set the yuan’s daily reference rate at 7.0039 per dollar on Thursday.

The Chinese currency is also have breached the key seven-level this week.