Oil prices claw back ground after sharp drop, buoyed by US crude stock dip

Gold Down on Profit Taking, Bearish Outside Market Forces.

Gold prices were ending the U.S. day session lower Wednesday. Risk aversion in the world marketplace has receded a bit at mid-week and that’s a negative for the safe-haven metal. Generally higher world stock markets Wednesday also worked against the gold market. Some chart consolidation and profittaking from the shorter-term futures traders were featured in gold and silver markets after both scored five-month highs earlier this week. Still on the front burner of the world marketplace are geopolitical concerns regarding the U.S. and North Korea stand-off, and U.S.-Russia relations. U.K. Prime Minister Theresa May surprised the marketplace on Monday by calling for snap general elections in June. The first round of the French presidential elections will be held Sunday. The second round will be on May 7. European market watchers are getting more nervous as the French elections approach and polls show tight races. This uncertainty remains an underlying bullish element for the safe-haven gold market.

Southern Copper Workers Ends Strike in Peru.

Southern Copper Corporation’s workers ended the strike at Peru-based mine on Wednesday which lasted for 10 days, wenhua.com reported. The company said its output was not significantly affected by the strike. Labor Union SecretaryGeneral Campos said the company and workers will participate in a negotiation with Labor Ministry on Thursday.

Global Zinc Deficit Alleviates to 177,000 tons in First Two Months of 2017 World Bureau of Metal Statistics (WBMS) data show global zinc market was in 177,000 tonnes of deficit during January and February 2017, compared to 258,000 tonnes of deficit in 2016. Global refined zinc output added 6.0% year-on-year in the first two months of the year. Consumption was up 7%, with 87,000 tonnes from Japan, up 16% year-on-year.

Oil prices claw back ground after sharp drop, buoyed by US crude stock dip.

Crude Oil prices regained some ground on Thursday after steep losses the previous day, with a slight drop in U.S. crude inventories stoking hopes that a push to rein in global oversupply could be gathering at least some momentum. Price increases came after both crude benchmarks fell over 3.5 percent the previous day following a report of surging gasoline inventories as well as another rise in U.S. crude oil production to 9.25 million barrels per day (bpd), up almost 10 percent since mid-2016.

"The U.S. has now entered a seasonal period in which stockpiles are reduced during the summer driving season, hence the unexpected miss weighed heavily on prices," James Wood, investment analyst with Rivkin Securities, said in a note. U.S. gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.

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