Commodities: Energy futures volatile after DoE inventory data, forecasts for snow in US
By Alexander Bueso
Date: Wednesday 10 Apr 2019
(Sharecast News) - The heaviest price action was in the energy patch on Wednesday, following the release of figures showing big declines in US oil product stockpiles and amid forecasts for potentially record-breaking snowfalls across America's Great Plains region.
According to the Department of Energy, America's stores of commercial crude oil rose by 7.0m barrels over the week ending on 5 April to reach 456.5m barrels (consensus: 2.3m b/d), leaving them at their average level of the past five years.
But those of gasoline dropped by 7.7m barrels as many refineries remain shuttered as a result of the ongoing maintenance period.
As a result, as of 1850 BST front month West Texas Intermediate crude oil futures for May delivery were adding 0.89% to $64.55 a barrel, alongside an advance of 1.46% to $71.64 for June-dated Brent.
In parallel, the Bloomberg commodity index was climbing by 0.49% to 83.03 while the US dollar spot index was down by 0.11% at 96.0920 and just off its intar-session lows.
Base metals on the other hand traded slightly lower, as traders picked-up on the cautious tone on display during European Central Bank chief, Mario Draghi's press conference earlier.
Three-month LME copper futures slipped from $6,482 per metric tonne at the open to close at $6,464.
"The wider market focus is on the minutes of the March US Fed meeting which are released this evening but ahead of that, Mario Draghis warned of risks to Euro zone growth which put the Euro under some pressure during the pm session," said traders a Sucden Financial.
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