Oil Price Increase
On Wednesday, Oil prices increase in early Asian trading, with U.S. crude joining Brent beyond $50 a barrel once statistics from the American Petroleum Institute presented a bigger than anticipated draw on stocks.
U.S. crude futures' August deal, the new front month from Wednesday, had increased 9 cents to $49.94 a barrel by 0223 GMT. Previously it increases to as high as $50.54, indicating the first time it had increased beyond $50 since June 10.
Brent crude futures increased 4 cents at $50.66 a barrel, after establishing 3 cents at $50.62 on Tuesday.
For the week ended June 17, U.S. crude inventories drop by 5.2 million barrels, according to the American Petroleum Institute. The trade group's statistics were triple the draw of 1.7 million barrels predictions by analysts in a survey.
On Wednesday, the U.S. government's Energy Information Administration will post official stockpile statistics.
Markets remain worried over the probability the United Kingdom will choose to leave the European Union on Thursday in a referendum, with surveys presenting slight difference between the "remain" and "leave" camps.
The greenback adhered to modest increase early on Wednesday following FED Chair Janet Yellen held the line of "gradual increases" in U.S. rates, whereas sterling's short-covering rally lost momentum a day onward of the referendum.
Japan's Nikkei declined approximately 0.7% in early trading, whereas gold values flanked lower.
"Strengthening in the dollar and weakness in other currencies would ... be directionally short-term bearish for crude oil" in the event of a British exit, Societe Generale stated in a research note.
A stronger greenback makes oil extra expensive for the reason that it increases the amount for imports for most of the world's countries.
"Global demand growth is quite robust, driven by the U.S., China, India and other emerging markets," Societe Generale said. "On the supply side, declining U.S. crude production is expected to underpin a trend of lower non-OPEC production."
On Additional News
On Wednesday, Gold futures extended losses from the previous session in European trade, dropping to the bottommost level in nearly two weeks as investors looked forward to Thursday’s highly-expected referendum on whether Britain will select to remain in the European Union.
Delivery of Gold for August on the Comex division of the NYMEX drop to an intraday low of $1,263.80 a troy ounce, the sluggish since June 9. It last raised at $1,267.45 by 06:50GMT, or 2:50AM ET, down $5.05, or 0.4%.
A day before, gold dropped $19.60, or 1.52 percent, its largest one day loss within a month, on increasing anticipations that Britain would choose to remain in the EU.
Politicians on both sides of the discussion will be making their last debate today ahead of voting stations opening tomorrow at 6:00GMT, or 7:00AM London time. Elections will close at 21:00GMT, or 10:00PM in London. The outcome will possible be anticipated early Friday, before the official vote count is broadcasted, based on initial vote counts and exit polling.
on Wednesday, at 14:00GMT, or 10:00AM ET, the Federal Reserve chief will appear in front of the House of Representatives' Committee on Financial Services.
Market players are pricing in a 12 percent possibility for a rate hike in July and 33 percent for September. Probabilities for a December rate increase raised at 54 percent, according to CME Group's FedWatch tool.
Gold increased to $1,318.90 late last week, the peak since August 2014, as fears regarding a possible exit by the U.K. from the European Union (EU) left investors climbing for safe haven assets.
Prices of the precious metal increased approximately 5 percent so far in June, as market players delayed anticipations for the next U.S. rate hike and during increasing worries the U.K. will vote to leave the EU in a poll this month.
Somewhere else on the Comex, delivery of silver futures for July drop 6.9 cents, or 0.4 percent, to trade at $17.25 a troy ounce throughout the morning hours in London, whereas copper futures move up 0.5 cents, or 0.24 percent, to $2.121 a pound.