Crude gains further in Asia ahead of API estimates - Sean Seshadri

Crude oil posted further gains in Asia on Tuesday ahead of industry estimates of crude and refined product inventories in the U.S. expected to show declines.

On the New York Mercantile Exchange crude futures for June delivery rose 0.49% to $49.47 a barrel, while on London's Intercontinental Exchange, Brent gained 0.48% to $52.38 a barrel.

Later on Tuesday, the American Petroleum Institute (API) will release its estimates of crude oil supplies at the end of last week with a survey showing an expected drop of 1.3 million barrels for crude, a decline of 1.2 million barrels for heating oil and a 1.225 million barrels dip in gasoline. The figures will be followed by official data from the U.S. Energy Information Administration (EIA) on Wednesday.

Overnight, crude settled lower on Monday, as investors questioned whether OPEC would seek to extend the current deal to curb global supply amid rising levels of U.S. production.

Oil prices fell for a sixth day, as focused shifted to the ramp-up of U.S. drilling activity ahead of a report on inventories from the Energy Information Administration on Wednesday.

Oilfield services firm Baker Hughes reported Friday, its weekly U.S. rig count rose by 5 to 688, which fuelled fears that rising U.S. shale production could weigh on efforts by OPEC and other major producers to curb the glut in supply.

The rise in drilling activity did little to ease concerned that shale production was set for its biggest monthly increase in more than two years.
Meanwhile, investors began to question whether OPEC would seek to extend the current deal to cut global supply amid a lack of confirmation from the oil cartel.

Elsewhere, Russian Energy minister Alexander Novak said Friday, "There are no decisions yet [concerning an extension to the deal to cut supply] and each country is currently studying this issue independently,"

OPEC has previously reiterated that Russia and non-members would need to remain part of the initiative to cut supply.
OPEC will decide at talks on May 25 whether to extend production cuts beyond June.

In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day (bpd). The deal to cut supply came into effect in January this year for a period of six-months until June.

Gold futures nurse losses; stay near 2-week low - Sean Seshadi

Gold prices were lower in European trading on Tuesday, edging down for the second straight session as investor sentiment remained skewed toward riskier assets in the wake of the French election results on Sunday.

Comex gold futures shed $4.10, or around 0.3%, to $1,273.40 a troy ounce by 2:45AM ET (06:45GMT). Meanwhile, spot gold was at $1,272.30, down 0.2%.

The yellow metal lost $11.60 on Monday after hitting its lowest since April 11 at $1,266.00, as investors dumped safe-haven assets after French election results eased fears over the future of the euro zone.

Also on the Comex, silver futures dipped 3.5 cents, or about 0.2% to $17.89 a troy ounce, after touching a one-month low of $17.55 in the prior session.

Market sentiment remained upbeat after centrist Emmanuel Macron won the first round of the French presidential elections.

Polls show Macron easily defeating far-right nationalist Marine Le Pen, who wants to take France out of the euro, in a runoff vote due to take place May 7, reducing the risk of an anti-establishment shock in the final round.

The outcome boosted risk-sensitive assets, such as global equities, and sparked a sell-off in assets perceived as safe, such as the yen, bullion and U.S. Treasuries, which are often used as a hedge in times of political uncertainty.

Elsewhere in metals trading, platinum inched up 0.1% to $961.25, while palladium slipped 0.4% to $792.45 an ounce.

May copper futures added 1.5 cents to $2.580 a pound.

Gold steadies below 5-month high amid geopolitical worries - Sean Seshadri

Gold prices eased slightly in North American trading on Tuesday, one day after rallying to its strongest level in five months as investors stayed cautious amid fresh political uncertainty in Europe and continued geopolitical tension concerning North Korea.

Comex gold futures shed $5.40, or around 0.4%, to $1,286.50 a troy ounce by 8:50AM ET (12:50GMT). Meanwhile, spot gold was little changed at $1,285.10.

The yellow metal settled higher for the fourth session in a row on Monday after hitting its strongest since early November at $1,297.40.

Also on the Comex, silver dipped 14.4 cents, or about 0.8%, to $18.37 a troy ounce. It touched its highest since November 11 at $18.65 in the previous session.

British Prime Minister Theresa May called on Tuesday for an early election on June 8, saying she needed to strengthen her hand in divorce talks with the European Union by shoring up support for her Brexit plan.

Meanwhile, investors were continuing to monitor political developments ahead of the upcoming French presidential elections as the race tightened after a surge in polls for far-left candidate Jean-Luc Melenchon, who wants a referendum on the country’s European Union membership.

Markets have long since been anxious about front runner Marine Le Pen, leader of the far-right National Front party, who also wants to put the country’s EU membership to a vote and abandon the euro.

Heightened tensions around North Korea, which has vowed to conduct more missile tests following Sunday's failed missile launch, also continued to support safe-haven demand for the yellow metal.

The dollar index, measuring it against a basket of major currencies, was down 0.4% at 99.76 in New York morning trade, the lowest since March 29.

Meanwhile, the 10-year U.S. Treasury yield was at around at 2.22%, one day after breaking below 2.20% for the first time since November 17.

Elsewhere in metals trading, platinum fell 0.3% to $988.40, while palladium slipped 0.2% to $786.97 an ounce.

May copper futures lost 3.9 cents to $2.557 a pound.

Gold prices jump in Asia on solid China trade figures - Sean Seshadri

Gold prices jumped in Asia on Thursday on solid trade figures from China, particularly on imports, and on geopolitical risk sentiment and President Donald Trump's remarks on the dollar and interest rates.

Gold for June delivery on the Comex division of the New York Mercantile Exchange gained 0.76% to $1,287.85 a troy ounce. Silver futures jumped 1.19% to $18.517 a troy ounce and copper rose 1.10% to $2.568 a pound.

China's imports soared by 31.1% in yuan terms, customs data showed on Thursday, with exports up 14.8% for the first quarter from a year ago. China reported a trade surplus of CNY454.94 billion in the period. Customs is expected to release dollar-denominated trade data later on Thursday.

In dollar terms, exports rose 16.4 % year-on-year in March with imports soaring 20.3%, both beating expectations, for a trade balance surplus of $23.9 billion, more than double the expected figure.

Overnight, gold prices traded higher on Wednesday, but eased from a five-month high, despite increased demand for safe-haven gold amid heightened geopolitical jitters.

Risk-off sentiment has boosted to demand for traditional safe-haven assets including gold, as investors sought refuge from the recent market volatility amid increased geopolitical concerns.

U.S. – Russia relations remained in the political spotlight, as U.S. Secretary of State Rex Tillerson was expected in Moscow on Wednesday to meet with his Russian counterpart Sergey Lavrov and discuss a number of sensitive topics including the Korean peninsula, Syria and bilateral relations.

The meeting between Tillerson and Lavrov, came fresh off the heels of comments from Russia President Vladimir Putin on Wednesday, after he said trust had eroded between the United States and Russia.

Despite, an uptick in demand for the yellow metal, market participants expected gold prices to pull back from its current highs, on the back of a more hawkish Federal Reserve and a rise in the dollar.

Geopolitical tension on the Korean Peninsula also provided support. A call on Wednesday between Chinese President Xi Jinping and U.S. President Donald Trump called for a peaceful resolution of concerns with North Korea's nuclear and missile programs.

Trump told the Wall Street Journal on Wednesday, that he thinks the currency (dollar) is getting too strong and hinted that he may reappoint Janet Yellen to chair the Federal Reserve Board when her term ends in 2018, as he added "I do like a low-interest rate policy, I must be honest with you,”

It wasn’t the first time Trump expressed concern over the strength of the dollar, after he previously warned in January, that a soaring greenback has disadvantages for U.S. companies that do a lot of business abroad.

Gold moves higher on geopolitical tension, takes Yellen in stride - Sean Seshadri

Gold prices rose in European trade on Tuesday as rising political tension over North Korea and Syria supported demand for the safe-haven metal.

On the Comex division of the New York Mercantile Exchange, gold for June delivery gained 0.39% to $1.258.85 a troy ounce.

U.S. Secretary of State Rex Tillerson is currently at the G7 Foreign Affair Ministers meeting in Italy where political leaders are working to produce a cohesive message on Syria.

The U.S. had been working to rally international support for its revised stance on Syria ahead of the American Secretary of State's first diplomatic trip to Moscow.

However, the Kremlin announced Monday that Tillerson and Russian President Vladimir Putin will not meet in what could be a sign of increased tensions.

Markets also focused eyes on Asia as North Korea warned Tuesday of “catastrophic consequences” in response to any further provocations by the U.S., days after a U.S. Navy battle group was sent to waters off the Korean peninsula.

Stateside, remarks Monday from Federal Reserve (Fed) chair Janet Yellen provided little effect on the precious metal as she repeated her outlook that the central bank would raise U.S. interest rates gradually with an aim to sustaining full employment and near-2% inflation without letting the economy overheat.

"Whereas before we had our foot pressed down on the gas pedal trying to give the economy all the oomph we possibly could, now allowing the economy to kind of coast and remain on an even keel -- to give it some gas but not so much that we are pressing down hard on the accelerator -- that’s a better stance of monetary policy," she said.

"We want to be ahead of the curve and not behind it," Yellen explained.

Elsewhere in metals trading, silver was up 0.13% at $17.938 a troy ounce.

Platinum rose 0.70% at $946.60 a troy ounce, while palladium gained 0.30% to $792.35 a troy ounce. Copper inched up 0.08% to $2.606 a pound.

Gold edges lower as strong dollar weighs - Sean Seshadri

Gold prices edged lower on Monday as the U.S. dollar continued to remain supported by Federal Reserve policy tightening expectations.

Gold for June delivery dipped 0.16% to $1,255.35 on the Comex division of the New York Mercantile Exchange by 07.27 GMT.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 101.14 after touching an overnight high of 101.22, the most since March 15.

Demand for the greenback continued to be underpinned after New York Fed President William Dudley said on Friday that plans to trim the Fed’s balance sheet later this year would prompt only a "little pause" in its rate hike plans.

Higher rates typically support the dollar by making the currency more attractive to yield-seeking investors.

A strong dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities less attractive to holders of other currencies.

The dollar shrugged off remarks by St. Louis Fed President James Bullard, who said on Monday that the Fed could begin shrinking its portfolio sometime later this year in a shift that would make it less necessary to raise rates.

Investors also largely shrugged off Friday’s disappointing U.S. employment data, which was not seen as impacting rate hike expectations.

The U.S. economy added just 98,000 jobs last month the Labor Department said, as lower temperatures and winter storms led to a slowdown in hiring.

Investors remained cautious amid heightened geopolitical tensions following the U.S. strike on Syria after U.S. Secretary of State Rex Tillerson warned the strikes were a warning to other nations, including North Korea.

Elsewhere in metals trading, silver was down 1.21% at $17.93 a troy ounce.

Platinum was down 0.73% at $955.55 a troy ounce, while palladium slid 0.62% to $798.7 a troy ounce. Copper fell 0.91% to $2.62 a pound.

Gold climbs to 5-month highs after U.S. airstrikes on Syria - Sean Seshadri

Gold prices climbed to five-month highs on Friday, as news of U.S. airstrikes against Syria boosted demand for safe-haven assets.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.89% at a five-month high of $1,264.55.

The June contract ended Thursday’s session 0.38% higher at $1,253.30 an ounce.

Futures were likely to find support at $1,254.40, Wednesday’s low and resistance at $1,318,60.

The precious metal strengthened after the U.S. launched cruise missiles at an airbase in Syria, sparking concerns of an escalation in the Syrian civil war.

U.S. President Donald Trump said on Thursday he ordered missile strikes against a Syrian airfield from which a deadly chemical weapons attack was launched.

The air strike came during a two-day summit between Trump and Chinese President Xi Jinping which, on Thursday, had a strong focus on trade and North Korea's military program.

Trump had warned that he would be ready to act unilaterally to address North Korea's nuclear program if China does not step up to help in the matter.

Market participants were also looking ahead to the U.S. nonfarm payrolls report, due later Friday, a day after the release of upbeat jobless claims data.

Elsewhere in metals trading, silver futures for May delivery jumped 1% to $18.428 a troy ounce, while copper futures for May delivery declined 0.53% to $2.645 a pound.

Gold climbs to 5-month highs after U.S. airstrikes on Syria - Sean Seshadri

Gold prices climbed to five-month highs on Friday, as news of U.S. airstrikes against Syria boosted demand for safe-haven assets.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.89% at a five-month high of $1,264.55.

The June contract ended Thursday’s session 0.38% higher at $1,253.30 an ounce.

Futures were likely to find support at $1,254.40, Wednesday’s low and resistance at $1,318,60.

The precious metal strengthened after the U.S. launched cruise missiles at an airbase in Syria, sparking concerns of an escalation in the Syrian civil war.

U.S. President Donald Trump said on Thursday he ordered missile strikes against a Syrian airfield from which a deadly chemical weapons attack was launched.

The air strike came during a two-day summit between Trump and Chinese President Xi Jinping which, on Thursday, had a strong focus on trade and North Korea's military program.

Trump had warned that he would be ready to act unilaterally to address North Korea's nuclear program if China does not step up to help in the matter.

Market participants were also looking ahead to the U.S. nonfarm payrolls report, due later Friday, a day after the release of upbeat jobless claims data.

Elsewhere in metals trading, silver futures for May delivery jumped 1% to $18.428 a troy ounce, while copper futures for May delivery declined 0.53% to $2.645 a pound.

Crude holds weaker in Asia with investors awaiting U.S.-China summit - Sean Seshadri

Crude held weaker in in Asia on Thursday after a surprise rise in U.S. inventories and as markets await the tone of summit talks with Chinese President Xi Jinping on starting later in the day in Florida.

On the New York Mercantile Exchange crude futures for April eased 0.55% to $50.87 a barrel, while on London's Intercontinental Exchange, Brent was down 0.52% at $54.08 a barrel.

Overnight, crude futures settled higher on Wednesday, but pulled back sharply from one-month highs, after the latest Energy Information Administration (EIA) report showed an unexpected rise in U.S. crude inventories to a record high.

Oil prices retreated from one-month highs, as fears returned that a ramp up in U.S. oil production could prove a challenge to an OPEC-led deal aimed at tackling the oversupply issue in the industry.

For the week ending March 29, The EIA said that crude oil inventories rose by 1.566 million barrels compared to estimates of a draw of 0.435 million barrels. Gasoline inventories dipped by 0.618 million against expectations for a drop of 1.422 million barrels while distillate stockpiles fell by 0.536 million barrels, compared to expectations of a 1.016 million decline.

The surprise build in U.S. crude stockpiles confounded expectations that U.S. demand for oil would start to pick up ahead of the ‘summer driving season’.
The Energy Information Administration (EIA) says that gasoline demand is typically about a million barrels per day higher at its summer peak than at its low point for the year, which is generally in January.

Meanwhile, market participants turn attention to Baker Hughes rig count, due to be released on Friday at 13:00 EDT.

Crude holds gains in Asia after sharp draw in API estimates - Sean Seshadri

Crude prices held gains in Asia on Wednesday after a larger than expected draw in industry estimates of U.S. crude inventories and as investors noted political risk from the launch of a medium-range ballistic missile by North Korea ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping this week that will discuss the Korean peninsula in addition to trade.

On the New York Mercantile Exchange crude futures for May delivery rose 0.57% to $51.32 a barrel, while on London's Intercontinental Exchange, Brent gained 0.44% to $54.41 a barrel.

Crude inventories in the U.S. dropped a more than expected 1.83 million barrels to 533.7 million barrels at the end of last week, the American Petroleum Institute (API) said Tuesday, for the third decline in the past three months.

Gasoline stocks down by 2.56 million barrels and distillates showing a decline of 2.09 million barrels, also down more than levels seen in estimates that expected crude inventories dropped by 435,000 barrels and distillates eased by 1.016 million barrels and gasoline supplies fell 1.422 million barrels. Supplies at the oil storage hub of Cushing, Oklahoma, rose by 1.34 million barrels.

Official data from the U.S. Energy Information Administration (EIA) is due on Wednesday morning.

Ship brokers on Wednesday said a further sign of reduce crude shipments globally by OPEC comes via oil analysis firm Vortexa that showed cargoes shipped fell by 17% since the January start of a coordinated pact by OPEC and leading non-OPEC producers to trim nearly 1.8 million barrels per day (bpd) of crude from global amrkets.

"We have seen a significant reduction in global oil supply since January, with oil on water going from 978 million barrels on Jan. 1 to 812 million barrels on April 3," Vortex CEO Fabio Kuhn said in a statement. "These changes are a signal that the rebalancing is happening faster than many in the market believe."

Oil extends retreat from 4-week highs; WTI falls below $50 - Sean Seshadri

Oil prices edged lower in European trading on Tuesday, extended a decline from a four-week high as a rebound in Libyan crude production and an ongoing increase in U.S. shale drilling activity exacerbated concerns about a glut.

The U.S. West Texas Intermediate crude May contract fell 26 cents, or around 0.5%, to $49.98 a barrel by 4:05AM ET (08:05GMT), after falling to an overnight low of $49.93. The U.S. benchmark lost 36 cents on Monday.

Elsewhere, Brent oil for June delivery on the ICE Futures Exchange in London shed 29 cents to $52.83 a barrel. The global benchmark declined 41 cents a day earlier.

Oil was pressured after Libya announced the production resumption at the Sharara field, the country's largest, after a one-week shutdown. The field was producing around 220,000 barrels per day prior to the March 27 closure.

Meanwhile, U.S. drillers last week added rigs for an 11th week in a row, data from energy services company Baker Hughes showed on Friday, extending a 10-month drilling recovery.

That brought the total count to 662, the most since September 2015, underlining concern that an ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

OPEC agreed in November last year to curb its output by about 1.2 million barrels per day between January and June. Russia and 10 other non-OPEC producers have agreed to jointly cut by an additional 600,000 barrels per day.

In total, they agreed to reduce output by 1.8 million barrels per day to 32.5 million for the first six months of the year, but so far the move has had little impact on inventory levels.

A joint committee of ministers from OPEC and non-OPEC oil producers will meet in late April to present its recommendation on the fate of the pact. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

Traders now looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of 0.5 million barrels.

Last week's numbers showed U.S. output helped boost crude inventories to record highs, feeding concerns about a global glut.

Elsewhere on Nymex, gasoline futures for May dipped 0.8 cents, or 0.5%, to $1.687 a gallon, while May heating oil slumped 0.7 cents to $1.555 a gallon.

Natural gas futures for May delivery added 0.7 cents to $3.135 per million British thermal units.