Oil prices demonstrate stability in Asian trading
Date
10/10/2024 8:21:48 AM
(MENAFN) On Wednesday, oil prices demonstrated stability in Asian trading, reflecting ongoing uncertainties linked to developments in the Middle East. According to Bloomberg Economic News, brent crude futures experienced a slight uptick, rising by 11 cents to reach USD77.29 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures also saw an increase, gaining 3 cents to settle at USD73.60.
Market sources highlighted significant data from the American petroleum Institute, which reported on Tuesday that U.S. crude oil inventories had surged by approximately 11 million barrels in the previous week, a figure that far exceeded analysts' expectations. This influx of inventory is indicative of persistent weak demand, which has influenced market forecasts. In response to these trends, the U.S. Energy Information Administration revised its projections for global oil demand growth in 2024, reducing it by 20,000 barrels per day to a total of 103.1 million barrels per day. This adjustment was attributed to sluggish industrial production and manufacturing growth in both the United States and China.
Compounding these dynamics, Hurricane Milton, one of the most powerful hurricanes to form in the Atlantic, is anticipated to impact Florida's Gulf Coast on Wednesday. This weather event poses potential risks to gasoline supplies for Florida, which is the third-largest consumer of fuel in the United States. In preparation for the storm, Florida has closed most of its ports to shipping traffic as of Tuesday, while energy companies have shut down certain pipelines and delivery terminals in the Tampa region.
In a contrasting market, gold prices remained steady on Wednesday as traders awaited insights regarding U.S. interest rate policy from the minutes of the Federal Reserve's latest meeting. Spot gold prices recorded USD2,622.24 per ounce, while gold futures in the United States saw a modest increase of 0.2 percent, reaching USD2,641.
As the global economy navigates through these fluctuating commodity prices, both oil and gold remain closely watched indicators of broader market stability amidst ongoing geopolitical tensions and natural disruptions.
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