6 Feb 2014
Commodities: US weather conditions continue to force up energy futures
FXStreet (London) - Below-normal US weather conditions have continued to exert upwards pressure on energy commodities. WTI posted a third day of gains on declining stockpiles, while natural gas has resumed its bullishness after a hike in margin requirements brought some pullback in price yesterday.
WTI climbs on declining stockpiles
WTI yesterday climbed for a third day as below-normal US temperatures pushed up demand.
A report from the US Energy Information Administration released yesterday showed that distillate supplies fell by fell by 2.36 million barrels to 113.8 million in the week ending 31 January.
The gains come as part of a three-week rally as demand for heating oil is ramped up by freezing US weather.
WTI contracts for March delivery are currently trading at USD97.71, up 0.34 percent.
Natural gas bullishness continues
Natural gas prices have also seen a surge on increased demand as a result of US weather conditions. Contracts for March delivery hit a peak of USD5.253 up 4.4 percent.
The contracts are currently trading at USD5.20, up 3.4 percent.
Natural gas had seen some pullback in prices earlier this week after the CME hiked margin requirements in a bid to restrain volatility. Initial margins for natural gas contracts traded on Nymex were hiked to USD5,500, from USD5,005, a 9.9 percent increase.
Gold at one-week high on haven bids
Gold added to steady gains on concerns over the US recovery, with some expectation of another miss in employment numbers when US non-farm payroll numbers are printed tomorrow.
Gold had been given some support by emerging market concerns, as tumbling EM currencies had investors buying up gold as a store of value. However, dissipating contagion fears slowed demand, but the continuing slide in equity markets continues to provide some support for the precious metal.
Gold is currently trading at USD1,259.93, up 0.18 percent.
WTI climbs on declining stockpiles
WTI yesterday climbed for a third day as below-normal US temperatures pushed up demand.
A report from the US Energy Information Administration released yesterday showed that distillate supplies fell by fell by 2.36 million barrels to 113.8 million in the week ending 31 January.
The gains come as part of a three-week rally as demand for heating oil is ramped up by freezing US weather.
WTI contracts for March delivery are currently trading at USD97.71, up 0.34 percent.
Natural gas bullishness continues
Natural gas prices have also seen a surge on increased demand as a result of US weather conditions. Contracts for March delivery hit a peak of USD5.253 up 4.4 percent.
The contracts are currently trading at USD5.20, up 3.4 percent.
Natural gas had seen some pullback in prices earlier this week after the CME hiked margin requirements in a bid to restrain volatility. Initial margins for natural gas contracts traded on Nymex were hiked to USD5,500, from USD5,005, a 9.9 percent increase.
Gold at one-week high on haven bids
Gold added to steady gains on concerns over the US recovery, with some expectation of another miss in employment numbers when US non-farm payroll numbers are printed tomorrow.
Gold had been given some support by emerging market concerns, as tumbling EM currencies had investors buying up gold as a store of value. However, dissipating contagion fears slowed demand, but the continuing slide in equity markets continues to provide some support for the precious metal.
Gold is currently trading at USD1,259.93, up 0.18 percent.