Crude oil price surged to new session highs on Wednesday after US oil producers closed most of their offshore production in the Gulf of Mexico in anticipation of Hurricane Laura. Producers evacuated 310 offshore facilities and shut 1.56 million barrels per day of crude output, 84% of Gulf of Mexico’s offshore production - near the 90% outage that Hurricane Katrina brought 15 years ago. The oil prices received an additional boost after the weekly API data showed a 4.5-million-barrel decline in US weekly inventories, versus a draw of 2.7-million-barrels expected by analysts.
Global stocks trading mixed on Wednesday as the investors await Fed Chair Powell speech at the Jackson Hole Symposium on Thursday for further clues on the Fed's next monetary policy steps. On Tuesday, Wall Street ended mixed with the Dow eased 0.2%, the tech-heavy Nasdaq Composite rose 0.8% and the S&P 500 gained 0.4% to reach fresh record closing highs.
Crude Oil prices trading at their highest since early March on Wednesday supported by positive API report and rising worries about supply disruptions.
In the currency market, the commodity currencies like the Australian dollar and New Zealand dollar climbed to a new weekly high lifted by strong oil prices and positive signs of progress in Washington-Beijing trade relations.
Gold price slipped to the new weekly low on Tuesday as risk sentiment improves lifted by vaccine-related optimism and the possibility of US-China trade tensions easing.
On the US-China front, according to the latest news, the US and China confirmed that they were committed to honouring the terms of the phase one trade deal. The two countries would be discussing next steps in trade negotiations, including the protection of intellectual property and obstacles to US financial services and agriculture.
On the earnings front, Salesforce (NYSE: CRM) surged 13% after-hours trading on Tuesday after the company Q2 financial results exceeded Wall Street estimates. “We know that we are light and we have to continue to be that light, especially during these difficult times,” CEO Marc Benioff said.
The number of people infected with the coronavirus across the world surpassed 23.9 million, of which at least 819 thousand people have died and 15.5 million have recovered, according to data released by the Johns Hopkins University. In the US, 43,000 new cases are being reported daily across the country, down 21% from early August, according to data compiled by Johns Hopkins University. India reports 67,151 cases and 1,059 fatalities in the last 24 hours, bringing the country total to over 3.23 million infections and 59,449 deaths.
XAU/USD: The gold price hovers near the $1920 zone during the European session ahead of the release of the US Durable Goods Orders data.
The important levels to watch for today: Support- 1910 and 1898 Resistance- 1930 and 1965.
Dollar Index: The currency pair trading steady above 93 level ahead of Fed Chairman Jerome Powell is due to speak at a virtual Jackson Hole symposium on Thursday.
The important levels to watch for today: Support- 92.80 and 92.50 Resistance- 93.50 and 94.
Quote of the day: It isn’t as important to buy as cheap as possible as it is to buy at the right time – Jesse Livermore.
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