West Texas
Intermediate crude advanced to a 14-month high after
Futures increased as much as 2.1 percent after the Energy Information Administration said that supplies dropped 9.87 million barrels to 373.9 million. The report was projected to show a 3.2 million-barrel fall, according to the median of 11 analyst responses in a survey.
Crude
production rose 1.8 percent to 7.4 million barrels a day last week, the most
since January 1992, the EIA said. Production has surged as the combination of
horizontal drilling and hydraulic fracturing, or fracking, has unlocked
supplies trapped in shale formations in the central part of the country.
Stockpiles
at
Oil also
gained as political upheaval in
WTI crude
for August delivery rose $1.93, or 1.9 percent, to $105.46 a barrel at 10:40
a.m. on the New York Mercantile Exchange. The contract traded at $105.04 before
the release of the EIA report at 10:30 a.m. in
Brent oil
for August settlement increased 45 cents, or 0.4 percent, to $108.26 a barrel
on the London-based ICE Futures Europe exchange. The volume for all contracts
was 23 percent above the 100-day average.
Gold prices rise on weaker dollar on the eve speech by Fed Chairman Ben Bernanke, from which the market is waiting for a hint of possible decline in bond purchases.
The spot price fell by nearly 10 percent since then, as Bernanke said in June that the U.S. economy is strong enough that the Fed could reduce the amount of bond purchases from the current $ 85 billion a month.
In addition to Bernanke's speech, investors await the publication of the minutes of the June meeting of the Fed, scheduled for 18:00 GMT.
Released on Wednesday weak Chinese trade data reinforced the fear of investors to the slowdown in the Chinese economy, which occupies the second place in the world for the consumption of gold. Export and import of China unexpectedly fell in June, according to customs data.
Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust are close to a minimum of four years, as investors prefer higher yielding stocks.
The cost of the August gold futures on COMEX today rose to a high of $ 1260.80 an ounce.
Change % Change Last
GOLD 1,247.50 12.60 1.02%
OIL (WTI) 104.01 0.87 0.84%