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Gold Set For Best Weekly Gains Since The Summer

Gold futures levelled off Friday morning after rising four consecutive sessions.

Traders were looking at a mixed U.S. jobs report that will shed little light on whether the Federal Reserve will raise interest rates early in 2017.

The U.S. added 15…

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Fxwirepro: Measures of Supply Glut Everywhere Stimulate Crude Prices, Wti Surpasses $54 Again &#150 Stay hedged Upside Risks

The stats were bullish for crude and bearish for products across the board. US crude imports dropped by nearly 1 Mb/d, as fog on the US Gulf Coast restricted tanker arrivals; this drove the large and temporarily bullish crude stockdraw. Crude imports should rebound in next week’s report, as shipping conditions return to normal.

On refined products, the common factor driving stockbuilds was very weak demand. Product consumption is measured by products delivered from refineries, and these supplies into the distribution system were strong the previous week; however, during the holiday week itself, deliveries fell, as is usually the case. The result was that gasoline, distillate, and jet kero stocks built by a combined 19.4 Mb last week.

Crude stocks drew by 7.1 Mb (vs. -2.0 Mb expected). The total draw was driven by a USGC decline of the same amount; Cushing saw a 1.1 Mb build (vs. +0.2 Mb expected).

The key reason for the total draw was that imports dropped by 984 kb/d to 7.18 Mb/d; fog conditions restricted arrivals on the USGC last week.

Production was flat at 8.77 Mb/d, with supply in Alaska edging up by 4 kb/d and lower 48 output unchanged. Refinery runs rose by 132 kb/d to 16.69 Mb/d, while 4w av. runs were flat at 16.60 Mb/d. Stocks remained above 5y highs.

Hence, we don’t encourage long-term short build ups hereafter; instead, we’ve already advocated hedging strategies so as to mitigate potential upside risks towards $60 a barel. We encourage longs in WTI crude of near-month expiries for targets of $60 levels with strict stop loss of 52.27 levels, thereby, the trade carries attractive risk reward ratio.

The material has been provided by InstaForex Company – www.instaforex.com

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U.S. Trade Deficit Widens More Than Expected In November

With imports rising and exports falling, the Commerce Department released a report on Friday showing that the U.S. trade deficit widened by more than expected in the month of November.

The report said the trade deficit widened to $45.2 billion in Nov…