Crude oil prices climbed Wednesday as US inventories dropped unexpectedly last week. The Energy Information Administration reported on Wednesday, US Crude inventories fell 4.4M bbls to 359.5M in the week ended June 24, much more than forecast. The move was attributed to slow imports and increased refineries’ inputs. Last week was the 4th straight weekly loss, driving crude stocks to the lowest level since April. Gasoline stockpiles also declined 1.4M bbls, missing the estimates of a small increase.
Crude traders were encouraged by the result that Greek parliament passed the new five year austerity program. The approval made it possible for the country to receive aid from EU and IMF in order to avoid a debt default. The EUR rallied about 0.5% against the USD. The Dollar Index fell 0.5%. The weaker USD lifted crude oil prices.
WTI Light, Sweet Crude for August delivery rose $2.28, or 2.52% to settle at $92.89 bbl on the New York Merc. In London, Brent Light Crude for August delivery gained $3.59, or 3.30% to close at $112.37 bbl.
Gold futures extended the rally Wednesday on the COMEX Division of the New York Merc, also driven by the Greek approval of austerity measures.
The most active Gold contract for August delivery rose $10.2, or 0.68%, to $1510.4 oz. The metal price has enjoyed a 2nd session rise after falling below $1,500 Monday.
Market analysts comment that the Greece’s approval put pressure on the USD, while benefiting the commodities in general. It added an extra support as many traders seek gold as a physical currency against the paper currency “Greenback.”.
The Greek parliament approved a package of additional austerity measures and asset sales in a bid to prevent a potentially disastrous default, as thousands of protesters clashed with police in Athens.
As a result, the Dollar Index, which measures the performance of the US unit against a basket of 6 currencies, fell to 74.672 from Tuesday’s 75.063.
Silver price for September delivery rose $1.117, or 3.3%, to $34.769. Platinum for October delivery gained $33.1, or 2%, to $1726.6 oz.
