Oil rallies after inventory report shows smaller sockpile

April 21, 2016

Article by ForexTime

Oil prices rallied over 4 percent since Thursday to a five-month high after a smaller-than-expected build in US crude inventories.

WTI oil, the US benchmark, popped above $44 a barrel to hit the highest level since November. Meanwhile, Brent crude, the international benchmark, rallied 4 percent overnight to near $46, the highest level in five months.

Many other commodity prices were also stronger, such as silver, which extended gains after Tuesday’s sharp gains to touch an 11-month high of $17.185 per ounce. It last traded at $17.10, up about 5 percent so far this week.
Another commodity, copper, sores to as high as $4,989 a tonne, its highest level in a month.

However, gold, which is a safe haven asset, remained within its $1,210-1,280 range since February and last stood at $1,247.91 per ounce, up 1.2 percent on the week.

Commodity price-linked currencies such as the Australian and Canadian dollars also benefited form the rise in oil prices.


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The Aussie was at $0.7796, having hit an 11-month high of a $0.7830 on Wednesday.

The loonie strengthened to a 9-1/2-month high of C$1.2593 to the greenback. It last stood at C$1.2656.

In other currencies, the euro slid against the US dollar as investors were cautious in buying the single currency ahead of the European Central Bank’s policy meeting later in the day. The press conference will be closely watched to see what ECB President Mario Draghi has to say.

 


Article by ForexTime

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