Oil, Gold and Natural Gas Futures Plummet On Economic Data

Oil, Gold and Natural Gas Futures Plummet On Economic Data
Oil, Gold and Natural Gas Futures Plummet On Economic Data

The Asian trading session on Friday morning seemed a bit stumpy as commodities like oil, gold and natural gas fell a bit for July delivery.

Sweet crude oil futures dwindled by 0.12 % to trade at USD 94.65 per barrel, on the New York Mercantile Exchange, even as traders are waiting for the release of the U.S. jobs report later today. The light crude was trading at USD 94.82 a barrel to end the trading session on Thursday with 1.15 % rise, the highest level reached by crude in four weeks. This is believed to be the first high of crude oil in a month, as investors are concerned about the demand for oil and economic news.

The economic data released on Thursday had U.S. Labor Department stating that the first-time claims for jobless benefits dropped by 11,000 to 346,000 last week, against the expected slump to 345,000. Moreover, the U.S. Energy Information Administration reported on Wednesday that U.S. crude oil inventories declined by 6.3 million barrels in a week till May 31, even as the analysts had estimated a drop of 356,000 barrels, thereby drawing concerns over the demand for crude.

Elsewhere, on the ICE Futures Exchange, Brent futures reached USD 103.60 per barrel for July delivery. If the oil continues to gain strength, it could reach a near term crossroads, prompting Federal Reserve to wind up QE (quantitative easing). However, financial experts are still positive that oil may spring back on strengthening jobs data, considering that the U.S. is the largest consumer of crude globally. The non-farm payroll report slated for a release later today might show an addition of 135,000 jobs for May and it may go up to 180,000. If the figures go on the lower side, then the Fed may not wind up QE in near future.

Gold also dropped by 0.08% to USD 1,414.65 per troy ounce on the Comex division of the New York Mercantile Exchange for August delivery in Asian Trading. The U.S. trading session on Thursday ended with the yellow metal rising by 1.20% at USD 1,415.35 a troy ounce.

Natural gas futures plummeted by 4.09% on the New York Mercantile Exchange for July delivery in the U.S. trading session on Thursday to trade at USD3.838 per million British thermal units, registering a three-month low.

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.