Crude Oil and Natural Gas Trade On A Positive Note Ahead Of EIA Inventory

         In the Asian session crude oil continues to gain trading at 92.72 adding 18 cents. West Texas Intermediate oil traded near the highest level in two weeks after an industry report showed U.S. crude stockpiles fell for the first time in a month. The API weekly report released prior to the official EIA inventory showed a decline in stock after the EIA showed a surprising increase in inventory last week. Crude supplies declined by 1.4 million barrels. 

Analysts polled were looking for a 2.3 million-barrel climb. Gasoline inventories also fell by 3.1 million barrels, while distillate stockpiles lost 2.2 million barrels, the trade group said. Analysts forecast a fall of 1.5 million barrels for gasoline supplies and a 2 million-barrel decline for distillate stockpiles.  This week’s EIA projected inventory is expected to show that crude oil added 2.4mn barrels differing from the API release yesterday.

Brent crude oil prices declined for the third straight session in choppy trading session, while US oil posted a fourth consecutive gain, tightening the spread between the two contracts to the narrowest since January. On Tuesday the EIA cut its 2013 world oil demand forecast but also cut the forecast for non-OPEC output having a neutral effect on the markets.

IEA Report Weighs On Crude Oil Prices

                         This morning crude oil continues to ease dipping 23 cents to trade at $92.28. Crude oil retraced back from the high of $93.40 and in the process settled lower yesterday at $92.51. A rise in US oil inventories and bearish forecast from the IEA weighed on the sentiment. The EIA reported that crude stocks rose 2.62mn barrels compared with the expectations for a rise of 2.3mn barrels. Meanwhile, International Energy Agency has cut estimates for global oil demand. Crude oil prices closed slightly lower, as better than-expected US retail sales lifted the dollar to a 7-month high, putting an end to a climb in dollar-denominated assets. The dollar climbed to a 7-month high against a basket of currencies and a 3-month peak against the euro on Wednesday, as robust US retail sales data bolstered prospects for the world’s largest economy. The dollar index rose to 82.882, after a high of 83.055 — its highest level since early August and compared with 82.585 on late Tuesday.

The International Energy Agency most recent report just released continued to inch lower on its forecasts for global oil demand while increasing its expectations of supply growth for this year.
Since January, the Paris-based energy watchdog has cut 200,000 barrels a day from its forecast for oil demand in 2013 and added 200,000 barrels a day to its expectations of supply growth from countries outside the Organization of Petroleum Exporting Countries, or OPEC. 

Gold and Silver Give Back A Bit Of Yesterday’s Gains

This morning in Asian trading precious metals are giving back some of yesterday’s gains, with gold trading down $2.20 at 1586.80 and silver at 28.813. On Wednesday gold prices started the trading day on a strong note, however the gains faded at the end of the trading session.

 The gains were scaled back, as strong US retail sales number for February boosted the appetite for riskier assets. The retail sales registered an increase of 1.1%, substantially above the estimates. Effectively, US equity markets have ended higher on nine consecutive trading sessions. Gold prices once again shied away from the psychological resistance of US$1,600/ounce and in this process registered a high, just 0.5 cents below this level.

During the Asian session today, traders saw positive eco data as Australian employers boosted payrolls in February by the most in almost 13 years, sending the currency to a one-month high as traders wound back bets the central bank will keep cutting interest rates. While on its neighbors listened as New Zealand’s central bank expects to keep borrowing costs at a record low until next year and signaled it may reduce its benchmark rate if the local dollar rises more than the economy justifies. The kiwi fell.