Date: Thursday 15 Jul 2010
Oil prices finished lower on Wednesday after investors were spooked by the Federal Reserve’s latest minutes in which policy makers trimmed growth forecasts to 3.0% and 3.5% this year, down from 3.2% to 3.7%.The minutes indicated the bankers talked about possible responses if the economy shifted sharply lower. Crude endured a choppy session, starting lower then rising just before the minutes.
Crude oil for August delivery finally settled 14 cents lower at $77.04 a barrel on the New
The Fed’s economic concerns outweighed data showing a decline in weekly US crude supplies. Figures from the US Energy Information Administration showed crude stocks fell by a bigger than expected 5.01m barrels. Analysts had expected a decline of 2.6m barrels.
Gasoline inventories however rose more than expected, rising by 1.6m barrels while distillates, used in heating oil and diesel, rose by 2.9m barrels.
The bigger than expected drop in crude supplies and Intel’s forecast busting results were however overshadowed by the Fed’s concern about the US economic outlook and disappointing US retail sales data.
Gold ended the day lower, in a volatile session, as traders took profit in the precious metal.
COMEX gold for August touched a high of $1,218.20 before retreating $6.50 an ounce to end at $1207.00 as US stocks and the euro turned lower.Copper for September delivery fell a penny to settle at $3.01 a pound.
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