Oil
Oil futures on Wednesday interrupted the series of downfalling for six sessions in a raw having received the support amid the increase of the FRS forecast about the US GDP, even not paying attention to strengthening worries about Europe recovery.
However, the growth of June oil futures was curbed. After the NYMEX session June quotings for Light sweet crude uprose by $0.46 or by 0.7% to $69,87 per barrel. Meanwhile, the rates of the most active July futures ended down by $0.22 or by 0,3% to $72,48 per barrel. Brent futures were down by $0.83 or by 1,1% to $73,60 per barrel.
Oil futures were closing with a decline on 10 out of the recent 11 sessions having demonstrated the decline by almost $20 per barrel, reflecting the strengthening of the fears referring the high debt of Greece influence badly on the economic growth of Europe. The plan of help from the EU and the IMF costing almost $1 trillion did not stop the falling of oil prices. Mostly because the financial position in Portugal and Spain looks shakier.
Doubts concerning the European economy pulled down June oil futures to $67,90 per barrel on Wednesday. Though they recovered in the end of the session after the minutes of the april session of the US FRS showed that the FRS increased its forecast for the GDP in 2010. Now the FRS predicts that the GDP will grow by 3,2-3,7% this year whereas in January they were expecting the GDP growth by 2,8-3,5%.
Weekly data on oil inventories released by the US Department of Energy have almost not influenced the session. The inventories ascended by 200 000 barrels for the week May 8-14 whereas gasoline inventories reduced by 300 000 barrels. The distillates including residual oil and diesel fuel declined by 1 million barrels. The refining capacity lowered to 87.9% vs. 88.4% a week before.
Gold
Gold prices declined from the record low of approximately $1250 reached last week when the investors were buying it because of its status of a shelter-asset amid instability in the euro area.
June futures fell by $21,50 or by 1,8% to $1193,10 per ounce.
Thereafter gold got the support acting as a shelter-asset and an alternative currency at the time when there was a non-confidence in the euro resulting from strengthening fears as to the eurozone sovereign debt. The assumptions that gold will be holding the value better than other assets, especially currencies, at the period of the growing economic and political disbalances has recently provoked the gold prices uprise to the record high.
However, on Wednesday, the euro increased from a 4-year low amid the market participants’ viewpoint that the ECB can take measures in order to attempt curbing the Common European Currency weakening the support of gold as shelter- asset.