Oil futures fell for a second day despite Brent crude topping $US75 a barrel on Thursday for the first time this year, but gold futures notched up a second successive, tiny, daily gain.
Brent prices rose in early trading on reports that Poland and Germany suspended imports of Russian crude through the a key pipeline after finding contaminated crude in their deliveries.
Russian officials claim the problem will be sorted by Monday and that news saw Brent retreat, along with West Texas Intermediate (WTI).
June West Texas Intermediate futures fell 68 cents, or 1%, to settle at $US65.21 a barrel in New York while. June Brent settled at $US74.35, down 22 cents, or 0.3%
The major factor for oil prices remains the US decision to end the exemption from sanctions on Iran for 8 buyers – including Japan, China, India and South Korea who are Iran’s major customers. The exemptions end May 1.
Offsetting that was the sharp rise in US stocks of oil this week – the 460.63 million barrels in stockpiles is the highest since October 2017. That’s a sign US domestic demand has been unable to handle the continuing rise in US production – now 12.2 million barrels a day.
That’s up 2 million barrels a day since early last year.
Meanwhile Comex gold futures edged higher for a second day after hitting a 2019 low on Tuesday.
Gold for June delivery rose 30 cents, or 0.02%, to settle at $US1,279.70 an ounce. The most-active contract settled at its lowest levels since about December 26 on Tuesday, before a 0.5% bounce on Wednesday.
May silver though fell 3.7 cents, or 0.3%, to $US14.879 an ounce after Tuesday’s 0.9% climb. Copper lost more ground with the Comex May contract down 1.7% to $US2.862 a pound.
