Commodities: Gasoline, WTI futures drop on rapid build in gasoline stocks

Alexander Bueso WebFG News | 06 Dec, 2017 21:11 | | |

BP, oil & gas

A large build in US gasoline stockpiles weighed on the entire energy complex, helping to send a key gauge for the entire asset class to a two-month low.

According to the Energy Information Administration, the US Department of Energy's statistical arm, gasoline stores in that country jumped by 6.8m barrels over the week ending on 1 December to sit in the middle of their average range.

The news, which confirmed a similarly bearish report from the private sector American Petroleum Institute, sent prompt month RBOB gasoline futures on the NYMEX down by 3.11% to $1.6650 a gallon, which in turn weighed on West Texas Intermediate futures, which dropped 2.95% to $55.92 a barrel.

Natural gas futures on the other hand were only 0.29% lower to $2.91/MMBtu ahead of official inventory data due out the next day.

As of 2045 GMT, the Bloomberg commodity index was near a two-month low, trading 1.08% lower to 84.11, even as the US dollar spot index nudged just 0.19% higher to 93.56.

Among metals, three-month LME-traded copper futures added $20 to $6,550 a metric tonne, following what traders at Sucden Financial labeled as a market rout during the previous session.

The day before copper futures retreated to an almost two-month low amid talk of downbeat sentiment towards the outlook for Chinese demand and a Bloomberg report that a hefty 'long' position had built-up in copper futures traded on the Shanghai Futures Exchange which was said to be weighing on prices.

February 2018 gold on COMEX also found a slight bid, nudging higher by 0.16% to $1,266.90/oz.

Spot platinum on the other hand was down 1.51% to $902.30/oz. and March 2018 COMEX silver off by 0.42% to $16.00/oz.

Elsewhere, in every sense, Bitcoin gained to $13,204.19, according to Coindesk.

Among soft commodities, March 2018 CBoT wheat was 1.73% lower to $4.2525 a bushel and the February 2018 CME live cattle contract had erased 1.04% to $1.1928/lb..

More news

13 Dec US close: Stocks end on mixed note, despite Fed and tax cuts

Stocks finished on a mixed note after two rate-setters dissented from the Federal Reserve's widely-expected decision to hike rates.

13 Dec Sector movers: Financials pace gains ahead of central bank policy decisions

Cyclicals paced gains on Wednesday, alongside a bounce in food retailers with financials figuring prominently ahead of interest rate decisions from the Federal Reserve on Wednesday evening, as well as the Bank of England and European Central Bank the next day.

13 Dec Director dealings: Ashtead's top brass sell at 52-week high

A large swathe of US-focused equipment rental company Ashtead's top brass offloaded a large part of their holdings of stock in the company even as the price hit a 52-week high.

13 Dec Europe close: Stocks hit by strong euro, Italian political uncertainty

Stocks sagged as a weaker-than-expected reading on US inflation sent the single currency higher ahead of the US central bank's policy announcement later on Wednesday, with Italian stocks also battered by reports which, analysts said, held out the prospect for political instability in the Eurozone's third-largest economy in 2018.

13 Dec Disney close to sealing $60bn deal for Fox and Sky stake - reports

Walt Disney is reportedly set to secure a $60bn deal to buy 21st Century Fox’s entertainment assets, including its 39% stake in UK broadcaster Sky.

13 Dec FOMC hikes rates, but Evans and Kashkari dissent

The US central bank went ahead with its third rate hike of 2018, as expected, but two rate-setters dissented, voting instead for no change.

13 Dec London close: Stocks flat as traders wait on US Fed

London stocks were little changed on Wednesday as investors digested some mixed UK jobs data and looked ahead to the latest policy announcement from the Federal Reserve.

13 Dec US open: Stocks rise ahead of Fed rate decision

Stocks are trading higher ahead of the US central bank's policy announcement later in the day, bolstered by a weaker than expected reading on consumer prices.

13 Dec Thursday preview: BoE, ECB, European Council, Bunzl, Ocado, Sports Direct

Thursday is a big day for the Brexit process as the European Council begins its two-day meeting in Brussels, while the Bank of England's and European Central Bank's rate setters are also convening and results are expected from the likes of Bunzl, Cussons, Ocado and Sports Direct.

13 Dec Gasoline stockpiles build alongside increased domestic output

US crude oil inventories shrank more quickly than expected last week, albeit a large increase in domestic output and an offsetting large build in gasoline stockpiles.