Crude oil fell in the early hours on April 20. Oil workers’ strike in Kuwait ended on Tuesday night. The API’s weekly crude oil stock report was disappointing.
Upstream stocks constitute about 75% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
In March, China’s consumer price index rose by 2.5% YoY (year-over-year)—the same growth seen the month prior.
New loans issued by Chinese banks rose to 1.4 trillion yuan ($211.2 billion) up from 726.6 billion yuan ($112.0 billion) in February 2016.
In 1Q16, China’s industrial production rose 5.8% YoY, up from the 5.4% increase seen in January and February 2016.
The API reported that the US gasoline inventory fell by 1.2 MMbbls (million barrels) for the week ending April 15, 2016—compared to the previous week.
The estimates of rising US crude oil inventories could add more pain for crude oil prices. Low crude oil prices negatively impact crude oil producers.
The failure of oil producers’ meeting in Doha could weigh on crude oil prices. The end of the three-day oil strike in Kuwait will also pressure crude oil prices.
Slowing non-OPEC crude oil production would support crude oil prices in 2016. The rise in Chinese crude oil imports boosted crude oil prices in March.
The crude oil supply outage in Kuwait boosted crude oil prices. The depreciating US dollar and steady global equity market also supported crude oil prices.
May WTI crude oil futures contracts trading in NYMEX rose and settled at $41.1 per barrel on April 19. Oil prices rallied due to oil workers’ strike in Kuwait.
Gold prices rose early on April 18 due to increased risk aversion. However, gold prices fell due to the recovery in oil prices and the positive rally in equities.
Early on April 18, copper prices were weak due to a fall in oil prices. Copper recovered as oil gained strength due to the production halt in Kuwait.
On April 18, WTI crude fell as low as $39. This was a decline of 6.5%. However, it recovered. At 3:45 PM EST, it was trading at $41.32—a loss of 0.94%.
In 1Q16, China’s retail sales of consumer goods rose 10.3% YoY (year-over-year).
According to the data by the Commodity Futures Trading Commission, hedge funds and money managers raised their bullish bets on gold and silver in the week ended April 12.
Gold gave steady returns to investors for the first two months of 2016 as unrest and instability continued in the markets. However, March started with some ups as well as downs for gold.
On April 18, crude oil dropped by almost 7%, dragging down the equity markets. In Doha, a nascent freeze output deal by OPEC and non-OPEC producers fell apart on April 17, propping up crude prices.
Major Asian markets (AAXJ) were trading on a positive note on April 19, 2016.
Critical European indexes (DBEU) were trading on a positive bias on April 19, 2016, as crude oil prices continued to bounce back.