Crude prices rose on Thursday based on Iranian supply disruption expectations and a higher than expected drawdown of US weekly inventories. West Texas Intermediate is trading at $70.86. The Energy Information Administration (EIA) published its weekly inventories yesterday, crude stocks fell more than expected by 2.6 million barrels versus the forecasted 1 million barrels drop.
Oil prices have been under pressure from global growth concerns resulting form trade disputes. The trade agreement between the US and Mexico earlier this week has eased those fears somewhat and the looming sanctions against Iran are beginning to impact oil supply lifting crude prices.
The yellow metal fell on Thursday as the trade war between the US and China is close to hitting a new level. Gold used to be a safe haven for investors, but in a trade war scenario with a solid expectation of US growth the US dollar has a higher appeal.
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Alfonso Esparza
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