On Friday, oil prices increased and are expected to gain over 2% on the week. Likewise, low supplies result in soaring prices of coal and natural gas. Gold was also down on Friday morning, but it capped as dollar prices shrank.
WTI crude futures rose 0.4% to $81.61 per barrel, and it witnessed a jump of 87 cents on Thursday. The contract was on the way to hit a 3% gain for the week. The decline in U.S treasury yields also covered up the loss on precious metal.
Brent crude futures were up 0.3% to $84.28 per barrel after gaining 82 cents last week. Analysts said OECD stockpiles hit the lowest price since 2015. It has been a sharp drop in the previous six years. As the recovery from the Covid-19 pandemic is on its way, demand increases. Fuel oil and diesel are expected to rise after high prices of coal and natural gas.
Through the Federal Reserve getting ready for asset tapering, gold futures inched down 0.11% to almost $1,796. Federal reserve looking after the U.S job market recovery to start tapering in November 2021. The International Monetary Fund (IMF) steering committee said policymakers across the globe must keep a close eye on the pricing dynamics but should not ignore transitory inflationary pressures.
The analysts said oil had gained a significant advantage due to the energy crisis in coal and natural gas. Oil demand may increase by 500,000 barrels per day due to the energy crisis. However, they stated that the global oil market could be bullish in the near future because of tight supply and strong demand.
The producer price index was up by 0.5%. More than 290,000 initial jobless claims have been filed this week. The United States Michigan Consumer Sentiment and Michigan consumer expectation indices data will be released later in the day.
Gold miner Barrick Gold Corp. (GOLD) rose 5% in the gold production of the third quarter from the last 12 weeks. Silver and platinum fell by 0.4% to $23.45 per ounce and 0.1% to around $1,054. But palladium edged up 0.2%.