Crude Oil Rises on Falling Inventories, Gold Climbs on Hopes for QE3
Crude oil jumped today as US stockpiles dropped. Crude oil inventories decreased by 4.7 million barrels to 378.2 million barrels last week, more than was expected. Refineries operated at 92.7 percent of capacity, the highest rate since June 2007. August futures for delivery of crude oil advanced as much as $2.36 (2.8 percent) to $86.27 per barrel by 12:31 on NYMEX. Brent climbed from $97.92 to $100.27 per barrel as of 16:51 GMT on ICE today.
Gold rose today ahead of the minutes of the Federal Open Market Committee that will be released later today. Traders hope that the minutes would hint at a third round of quantitative easing. The recent employment data from the United States was indeed not encouraging, but the question remains whether it was bad enough to spur the Federal Reserve to action. Some market participants certainly hoped so and were going long on gold. Gold surged from $1,564.90 to $1,582.50 per ounce before trading at $1,579.00 on COMEX today.
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