Crude oil near two-month low as US inventories rise on worries over demand

Crude oil futures are down 3% overnight and 8% over the month, trading near two-month lows on signs of weak US demand and easing tensions in middle east. According to the latest report by EIA, US inventories in the previous week increased by 7.3 million barrels to 460.9 million barrels, the highest since June. This rise in US crude inventories may have added to the concerns about a weakening demand.

Oil prices are sharply lower this week after soaring to the highest level since October in the aftermath of Iran’s unprecedented attack on Israel. The decline in oil futures is coinciding with signs of easing tensions in the Middle East. The US and Saudi Arabia are talking about a pact that would offer Riyadh security guarantees and possible diplomatic ties with Israel if its government ends the war in Gaza, according to a news report by Bloomberg.

GOLD PRICES

Gold prices are witnessing buying interest below $2300 per ounce, having cooled off from the all-time highs of $2431 per oz level last tested on April 12. This fall occurred as Federal Reserve maintained its key rate unchanged for a sixth consecutive time. Easing concerns over geopolitical factors may have added to the gold price cool off. World Gold Council has said that the global gold demand in the January-March quarter has been the strongest first quarter of a year since 2016. Demand for gold rose 3% on year to 1,238 tonne during the January-March quarter.