Oil continues to rise, gold gains amid the decline in the dollar and US crude stocks
Oil prices rose more than 1% in morning trading, on Wednesday, after industry data showed a sudden drop in US crude stocks, indicating continued demand despite sharp interest rate hikes that dampened global growth.
Brent crude futures rose 1.2 percent to $95.78 a barrel by 04:41 UTC, while US West Texas Intermediate crude contracts rose 1.4 percent to $89.63
Both crudes increased by about 2% in the previous session against the backdrop of the weak dollar, and after unconfirmed talk that the Chinese government will study ways to ease Covid-19 restrictions from March 2023, which may lead to an increase in demand in the second largest oil consumer.
And in another positive sign for demand, yesterday's data - from the American Petroleum Institute - showed that crude oil stocks fell by 6.5 million barrels, in the week ending on October 28, according to market sources.
Meanwhile, gasoline stocks fell more than expected, with inventories down 2.6 million barrels, compared to analysts' expectations for a 1.4 million draw.
Catalysts for the rise of oil
The dollar fell from its highest level in almost a week against its major peers, with traders worried ahead of the Federal Reserve's (US Central Bank) rate decision today.
A weak dollar makes oil cheaper for holders of other currencies, and usually reflects an increased appetite for risk.
The zero-Covid policy in China was a major factor in curbing oil prices, as repeated shutdowns slowed growth and reduced demand for oil in the second largest economy.
Possible disruptions due to the European Union's embargo on Russian oil - which takes effect on December 5 - may also raise prices.
This ban, in response to Moscow's war on Ukraine, will be followed by a halt to imports of Russian petroleum products in February
gold is rising
Gold prices rose on Wednesday as the dollar fell, while cautious investors awaited a key monetary policy statement from the US Central Bank, which may provide indications of the pace of interest rate hikes.
And gold rose in spot trading 0.2% to $ 1650.67 an ounce by 05:55 UTC, and the rise may continue during the day.
US gold futures also rose 0.3% to $1655.00 an ounce, before extending gains as well.
The dollar index fell 0.2%, which strengthened the attractiveness of dollar-denominated gold to buyers holding other currencies