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As geopolitical tensions increase, oil and gold prices are rising before CPI
As geopolitical tensions increased ahead of the key U.S. inflation data. The yen has been mostly flat against the US dollar. Its gains have been largely unwinded following rare interventions in the currency markets by Japan. North Korea launched a missile early in the morning, which shook Asia. The markets remained 'focused' on the U.S. Consumer Price Index data in the afternoon session to see if it would signal a possible Federal Reserve rate increase. Kyle Rodda is a senior financial analyst at Capital.com. He wrote that "market sentiment is lukewarm amid lingering geopolitical risks and as market players head to U.S. CPI statistics." He added that the lack of substantive news and progress in the talks, coupled with Iran's reaffirmation of its commitment to control the Strait of Hormuz is keeping oil prices on the rise, while U.S. indexes are on hold. U.S. crude climbed 0.89%, to $83.94 per barrel. Brent rose to $89.60 a barrel. Both were up 0.78% for the day. Both benchmarks closed more than $1 higher on Wednesday, their highest closing since July 31, and continuing gains after a 5% jump on Monday. Spot gold rose 0.46%, to $4387.03 per ounce. MSCI's broadest MSCI index of Asia-Pacific shares outside Japan rose 0.5%. Japan's Nikkei stock gauge, the benchmark for Japan's market, traded flat after a long holiday. The Yemeni transport ministry reported that four crew members of a ship owned by Egypt were killed during an attack on Tuesday. Meanwhile, the U.S. army said they had struck a container vessel attempting to sail towards an Iranian port. This would be the first Houthi strike on shipping since February 28, when the Iran War began. The war is not ending, despite the repeated claims of U.S. president Donald Trump that a deal was imminent. Pyongyang has long condemned the joint military drills between Seoul and Washington. A North Korean missile was fired days before. Taiwan has condemned the planned naval exercises between a Chinese warship and an Indonesian ship off its east coast. Money markets indicate that there is a 50/50 chance of an increase in the CPI on Wednesday. A poll predicts that consumer prices will rise 0.1% in July, after dropping 0.4% in June. The annual CPI inflation rate is expected to drop to 3.4%, down from 3.5% one month ago. Skye Masters said in a podcast that "everyone is watching the CPI report." Skye Masters is head of'markets research' at National Australia Bank. If you see the CPI report coming in at zero I think that you will see a reasonable rise in Treasuries, as the market releases expectations of the Fed tightening. The markets are also increasingly pricing in a rate hike early in Japan. This puts pressure on Japan's short-dated bonds. The yield of the 5-year Japanese government bond rose to a record-high 2.1%. Meanwhile, the yield for 2-year Japanese bonds reached a high of 1.63%, which is a new 31-year high. The dollar index (which measures the greenback in relation to a basket of other currencies) rose by 0.04%?to 99.85. The euro fell 0.02% to $1.1538. The Japanese yen fell 0.03% to 159.31 dollars, but remained?off the high of last week of 155.20. This is after several suspected rounds or intervention. The pound fell 0.01%, to $1.3501. Early European trades saw the Euro Stoxx futures down 0.15%, at 6,563, German DAX Futures fall 0.12% to 26,444, while FTSE Futures dropped 0.25% and stood at 10,823. The S&P 500 E-minis (U.S. Stock Futures) were up by 0.03% to 7,750. (Reporting and editing by Edwina Gubbs in Tokyo)
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Australian shares fall to a one-week low amid Middle East tensions
The Australian share market fell to its lowest level in a week on Wednesday. This was due to the?commodity stocks and the caution about rising tensions?in the Middle East. As of 0054 GMT the S&P/ASX 200 Index?was down by?0.4%, at 9,209.70, points, reaching its lowest level since 5 August. The benchmark index ended the previous session 0.2% higher. Investors remain cautious after Reserve Bank of Australia kept rates unchanged on February 2 and indicated it could tighten further policy if inflation persists. The escalating tensions in the Middle East dampened risk appetite on Wednesday. New attacks near major shipping routes fueled concerns about global energy supplies, and pressed Australia's resource-rich share market. The corporate earnings of the top lenders were also a focus. Commonwealth?Bank Australia reported record cash earnings, but noted a "sharp" slowdown in mortgage demand since May's government tax changes. CBA shares fell by 2.2%, to the lowest level since July 22, Financials recovered from initial losses to trade 0.2% up, mainly helped by Suncorp's nearly 5% increase after the insurer announced annual cash earnings that exceeded market expectations. BHP Group, Rio Tinto and other giants fell around 1%. Woodside Energy fell 0.8%, while energy stocks also dropped 0.3%. Separately shares of Australian Securities Exchange dropped 2.2% after the operator of the bourse said that a shareholder intended to file an action against the company at the Federal Court of Australia. Power ?producer AGL Energy forecast stronger-than-expected 2027 earnings, lifting its shares ?by over 4% to their highest levels since June 15. Health stocks fell 0.7%, while tech stocks declined?0.3%. New Zealand's benchmark S&P/NZX50?index declined by 0.1% to 13,848 points. (Reporting by Aamir Sheik Khalid in Bengaluru; Editing by Sherry Jacob-Phillips) |1|For more information on DIARIES & DATA: U.S. earnings diary Wall Street Week Ahead Global Economy Week Ahead ................................................................ For latest top breaking news across all markets |1|
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Australia promised to build 1.2 million homes but builders are reaching their limits
Builder Jay Perham in Brisbane, Australia, was forced to pour cement at a housing site during the night because he couldn't find workers to do the work when the sun came up. Then, quality problems arise. Perham, the manager of Axiom Construction, said that you can't see at night. "The last three or four pours that I have made were all at night and we had head torches on and lamps." Brisbane, the host city for 'the 2032 Olympic Games, will see around A$7billion ($4.93billion) in Olympic-related construction. This will add to the existing shortage of workers. The construction of houses and apartments in Brisbane, and throughout Australia, is taking longer and costing more. This, according to builders and analysts, undermines the government’s promise to build 1.2 million homes by 2029. The National Housing Accord's five-year goal, which was agreed upon with state governments and the industry, is at the heart of Prime Minister Anthony Albanese’s strategy to solve a housing shortage in all 50 states. The plan combines federal funding of billions with state commitments for fast-track approvals and rezoning, as well as land releases to allow new developments. Official data show that two years after the agreement was signed, the number of completed homes is 27% lower than the average of 60,000 per quarter needed to reach the target. Hal Pawson is a professor emeritus of housing at University of New South Wales. He said: "We can clearly see that the annual house building numbers in Australia are not enough to reach the 1.2million target." The capacity of the construction sector is at its limit. Pawson said that while construction progress is varying across the country, it is especially difficult in Sydney, Australia’s largest city and the one of the least affordable cities for housing. Clare O'Neil, the Australian Housing Minister's spokesperson, acknowledged that there were challenges in achieving this "deliberately aggressive" target. The spokesperson stated in an email that the solution to these challenges was to "keep doing all we can to build homes faster". STALLED CONSTRUCTION The construction bottlenecks are threatening to make housing more expensive and highlight the challenge that many wealthy countries face in building enough homes, when there is a shortage of workers, infrastructure and material. The market has been cooled by major reforms announced in may that ended the types of tax breaks for property investments often blamed for driving up house prices. According to Cotality, property consultants, auction clearance rates have reached a six-year low and the average price of a property has dropped by about 2% over four months. Builders argue that this has not done much to alleviate the supply shortages that have plagued industry in waves ever since the COVID-19 epidemic. Michael Hopkins, a lobbyist for the industry, Master Builders Queensland said that it had shifted the discussion from boosting supply to taxation. This was not helpful. "We should talk about how to boost our workforce and how to streamline our redtape and regulations." Official data revealed that new dwelling starts in Australia declined by 11.2% in the first quarter 2026 compared with the previous quarter. Year-on-year growth also slowed to just 0.2%, down from 26.1%. The apartment construction sector was the largest drag on the economy, with a decline of 20.7% in the first quarter. House construction declined by 3.5%. Master Builders Australia reports that a new apartment takes 33 months to complete, compared with 21 months 10 years ago. A house, on the other hand, takes 11.5 month, compared to 8.6 months during the same time period. According to the data shared by Urbis, a consultancy in Australia, almost 70% of apartments approved since 2020 are still not under construction. Data from Urbis revealed that the Gold Coast, in Queensland, had the worst backlog, with 83% of apartments yet to be built, compared to 64% in Sydney, and 62% in Melbourne. Mark Dawson, Urbis housing sector leader, said that the rise in construction costs is a major factor affecting the affordability of apartments. Housing Industry Association (HIA), an industry group that represents builders, predicts Australia will miss its 2029 housing goal by approximately 15%. Don't help supply during a downturn Perham, a Brisbane resident, said that the price of concrete has increased by nearly 150% over the last six years. Plaster board prices have risen 46%, and pine frame prices rose 35%. Rami Issa of Roar Constructions in Sydney says that rising costs are reducing margins and many construction companies are struggling to breakeven. Issa does more of the work himself to cut costs. "I never used the tools before." He said, "I used to run the site but now I am?jumping with the boys on the tools to reduce the number of working hands." The industry is already feeling the squeeze of cost pressures. The data of the corporate regulator revealed that in the financial year ending June 30, 3472 construction companies entered into insolvency proceedings and appointed external administrators for a first time. This is down from 3,596 a year earlier but up from 2,977 a year ago. Australia's official?rate of cash is now 4.35%. It has been increased three times since 2026. Builders are bracing themselves for another drop in demand, as another rate increase is possible before the end of this year. Kenan Yazici is the general manager at Betacon Construction, a construction company in Sydney. He believes that the paradox of the boom-and bust cycles in Sydney is the fact that a downturn doesn't necessarily make the housing market more affordable. He said that when interest rates rise, people tend to pull back on development. This results in fewer projects being launched. "All of a suddenly, interest rates begin to drop. The property market is booming. Guess what? "There's just not enough to go around."
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AGL Australia forecasts higher earnings in 2027 on the back of battery growth and lower costs
Australian power producer ?AGL Energy forecast stronger-than-expected 2027 earnings ?on Wednesday, ?betting lower operating costs and contributions from its expanding battery portfolio would offset softer wholesale electricity prices. The Melbourne-based firm forecasts underlying net profit for 2027 between A$470 ($332.01 millions) and A$670,000,000, with the middle point above Visible Alpha's estimate of A$550.8million, despite reporting a slight drop in profit in 2025. AGL stated that earnings would be supported by stable retail energy margins, and the contribution of a Liddell?Battery recently installed in New South Wales. This battery is a grid-scale 500 MW battery. According to the power producer, '2027 earnings will be affected by lower wholesale prices of electricity flowing through contracted positions, and higher gas costs, as low-cost legacy contracts are set to expire. AGL announced that the construction of the 500-MW Tomago Battery as well as the "Kwinana Swift Gas 2 Project" was underway. The utility's outlook is based on a net profit of A$631m for the year ending June 30. This was down from A$640m a year ago and below the Visible Alpha consensus of A$636.3m. AGL, Australia's biggest corporate carbon emitter said that lower wholesale electricity prices "weighed on earnings" as supply constraints eased and the milder weather decreased market volatility. Damien Nicks, AGL's Managing Director and CEO, said that the decrease in gross margins across the gas portfolio was due to the increase in gas purchase costs. This reflects the gradual rolling-off of legacy gas supply contracts at lower prices during the year. The power producer declared a final dividend at 26 Australian cents for each?share. This compares to 25 Australian cents the year before. AGL stated that it was in discussions with potential investors for more than two gigawatts of renewable energy as it looked to?improve capital efficiency and progress?its energy transformation plans. The A$8.730 share price was the highest intraday percentage increase since February 11, and also their highest level since June 15
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US appeals Court invalidates Biden-era efficiency rules for stoves and ovens
The federal appeals court on Tuesday overturned a Biden administration era rule setting efficiency standards for electric and gas stoves and ovens. It said the agency had improperly bypassed procedures to solicit public comments. The 5th U.S. Circuit Court of Appeals in New Orleans ruled 3-0 for seven Republican-led states -- Louisiana, Mississippi, Montana Nebraska Tennessee Texas and Utah. The New Orleans Circuit Court of Appeals ruled for seven Republican-led States -- Louisiana, Mississippi and Tennessee -- who challenged the Department of Energy’s “direct final rule” on?consumer grade stoves and appliances. The August 2024 rule aimed to limit the amount of energy that consumers used in their kitchen appliances and ban an older technology called linear power supplies. Circuit Judge Andrew Oldham stated that the Energy Department shouldn't have rushed the rule knowing that many states would oppose a similar standard in 2023. He dismissed the rule, saying it was part of an effort by former president Joe Biden's Administration to make appliances "more costly?and less valuable." Preserving 'Consumer Choice' Direct final rules are usually reserved for non-controversial issues. Although the Energy Department defended their rulemaking during the appellation, it is unclear whether they would still defend it. The Republican President Donald Trump has long criticised energy conservation regulations. Energy Secretary Chris Wright promised last month to permanently limit efficiency mandates on home appliances which "raise costs" and "disrupt consumer choice." A spokesperson for the Energy Department said that following Tuesday's ruling, the Trump administration was "committed to making sure that consumers are able to choose home appliances that best suit their lifestyles and budgets." CONTROVERSY EVADING Oldham, who was appointed by Trump, stated that the Energy Department rely on support from a number of?industry organizations, "environmental activist" groups in California, Massachusetts, and New York. The judge stated that "it is not possible to say with a straight faced" that these Democratic-led States fairly represented the whole country. He said that the department did not consider whether increasing the complexity of appliances in order to increase efficiency would decrease reliability or increase costs. Oldham wrote that the gas stove measures of the previous administration were some of its most controversial proposals in terms energy. The idea that all of this controversy could be elided by using the DFR - a mechanism designed for consensus rulemaking - is untenable. Oldham's ruling was backed by Judges Catharina Ho and James Ho. Haynes was appointed by Republican President George W. Bush and Ho by Trump. Jonathan Stempel reported from New York, and Sanjeev Miklali and Mark Porter edited the story.
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Oil prices continue climb on US-Iran deal doubts; stocks retreat
Tuesday, oil prices reached a new high and Wall Street closed lower as traders became more pessimistic over a possible deal to restore stability in the Middle East and open the Strait of Hormuz. The uncertainty?over global inflation expectations also weighed. The gold price?retreated after a peak of two months ahead of the consumer price data that is due on Wednesday. The Strait of Hormuz is closed until the U.S. changes its behavior and accepts Iran's demands to end the conflict, said the newly appointed Secretary of Iran's Supreme National Security Council on Tuesday. Ron Albahary is chief investment officer of LNW. He said that the markets are grappling with the prospect of some sort of detente. However, they're mistaken in believing that any kind of resolution will be the end of the story. The MSCI index of global stocks fell 0.23%, reversing earlier gains. The escalating tensions between the U.S., and Iran have been at the forefront of attention. Oil prices soared 5% on Monday as a result. Donald Trump, the U.S. president, responded on Monday to Iranian demands for a deal by stating his own. He demanded that Iran pay compensation for those who died in wars and attacks, as well as protests. This could complicate efforts to reopen this vital waterway. Brent futures finished $1.19 higher, or 1.4% at $88.91 per barrel. U.S. crude oil ended up $1.07 or 1.3% at $83.20. Tony Sycamore is a market analyst for IG. "You can probably see the (oil market) sitting in the $75-$95 range as we wait to see which party blinks first." Wall Street saw the Dow Jones Industrial Average fall 0.34% to 53791.85, S&P 500 drop 0.32% at 7,728.20, and Nasdaq Composite decline 0.60% at 26,445.45. Investors weighed the geopolitical risk in the Middle East against earnings optimism, keeping STOXX 600 near its all-time highs. Emerging markets stocks dropped 0.28% to 1,665.44. The broadest MSCI index of Asia-Pacific stocks outside Japan closed unchanged at 1,627.53. INFLATION DATA The U.S. consumer price report for July will not include the latest rise in energy prices, but it can still be used to set expectations for the Federal Reserve meeting in September, where money markets indicate a 50-50 possibility of an increase. Jonas Goltermann is the chief markets economist of Capital Economics. He said: "We believe that risks are skewed in favor of a hot print. This would likely drive a recovery in rate expectations, and potentially, renewed concerns about stagflation." The yield on the benchmark U.S. 10 year?notes dropped 0.35 basis points to 4.695 percent. Focus on TECH STOCKS The Nasdaq closed about 2% lower than the record-breaking close of early June. Amazon and Alphabet both fell, weighing down the tech-heavy S&P 500 and the Nasdaq. Nvidia announced overnight that it has teamed up six major financial institutions, including BlackRock and Apollo, to create funding measures for AI infrastructure worth more than 500 billion dollars. The company did not reveal any other details, including financial terms or investment commitments, nor how the $500 billion planned could fit in with existing funding arrangements. "A small piece of me wondered if this was how I felt when subprime loans first became mainstream products -- the innovation which helped to trigger the GFC,"?Sycamore said, referring the global financial crises. Intel has raised $20 billion in a share offering, its first since 1971 when the chipmaker listed. CURRENCY GYRATIONS The yen is back in the spotlight among currencies. The yen was last up 0.01% versus the dollar. It is still off the high of last week of 155.20. This follows several suspected rounds, including a move by Japan and the United States. The holiday season in Japan led to a thinner trading volume than usual. This is often viewed as a catalyst for an intervention as small trades can have a larger impact on the price than normal. The dollar index (which measures the greenback versus a basket currencies including the yen, the euro and others) rose by 0.05%, to 99.82. Meanwhile, the euro fell 0.01%, to $1.1541. Gold futures in the United States rose 0.5% to $4,441.10, but spot gold dropped 0.45%. (Additional reporting by Rae Wee and Avinash P in Singapore, and Purvi Agarwal and Nick Zieminski in Bengaluru. Editing by Clarence Fernandez and Kate Mayberry; Toby Chopra and Rod Nickel).
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Stocks fall as oil prices continue to rise amid doubts over a possible US-Iran agreement
On Tuesday, oil prices rose and global shares declined as traders evaluated talks about reopening of the Strait of Hormuz. The uncertainty over global inflation also weighs. Gold prices have'retreated' from their two-month high ahead of Wednesday's consumer price data. The Strait of Hormuz is expected to remain closed as long as the U.S. doesn't change its behavior or accept Iran's demands for an end to the war. This was the statement made by the newly appointed secretary of Iran’s Supreme National Security Council on Tuesday. Ron Albahary is chief investment officer of LNW. He said that the markets are weighing the prospect of some sort of detente. However, they're mistaken in believing that this resolution will be the end of the story. The MSCI index of global stocks fell 0.28%, reversing earlier gains. The U.S.-Iran back and forth has been the focus of attention amid increasing?tensions which sent oil prices soaring 5% on Sunday. U.S. president Donald Trump responded with his own conditions to Iranian demands for a deal, calling on Iran to compensate those who died in?wars and attacks, protests and demonstrations. This could complicate efforts to reopen this crucial waterway. Brent crude futures rose 1.29% per barrel to $88.90. U.S. crude oil rose by 1.22% to $83.17. Tony Sycamore is a market analyst for IG. He said, "This will be a war now of attrition." "You can probably see the (oil market) sitting in the $75-$95 range as we wait to see which party blinks first." Wall Street saw the Dow Jones Industrial Average fall 0.22%, to 53,858.27. The?S&P 500 fell 0.38%, to 7,723.79, and the Nasdaq composite was down 0.79%, at 26,395.56. Investors balanced the geopolitical risk in?the Middle East against earnings optimism, and the pan-European STOXX 600 remained flat at 660.51. INFLATION DATA The U.S. consumer price report for July will not include the latest rise in energy prices, but it can still be used to set expectations for September’s Federal Reserve meeting. Money markets indicate that there is a 50% chance of an increase. Jonas Goltermann is the chief markets economist of Capital Economics. He said: "We believe that risks are skewed in favor of a hot print. This would likely drive a recovery in rate expectations, and potentially, renewed concerns about stagflation." The yield on the benchmark U.S. 10 year notes dropped 1.17 basis points, to 4.686%. Focus on TECH STOCKS The S&P 500, Dow and Dow Jones hovered around their all-time records?hit in the last week. Meanwhile, the Nasdaq, which is still over 2% off its record, but above its July lows, when the tech heavy index fell almost 10% since its peak, has risen well beyond its current level. Nvidia announced overnight that it has teamed up six major financial institutions, including BlackRock and Goldman Sachs, to create a funding measure worth more than 500 billion dollars for AI infrastructure. The company did not provide much detail about the financial terms or investment commitments, nor how $500 billion could fit in with existing funding arrangements. Sycamore said, "A small piece of me wondered if this was how I felt when subprime loans first became mainstream products -- the innovation which helped to trigger the GFC." She was referring to the global financial crisis. Intel raised $20 billion in its first share offering since it listed in 1971. Intel shares have been down by 0.2% in the last few days. The yen has been in the spotlight again. The yen was down by 0.02% last time against the dollar. It is still off the high of last week of 155.20. This follows several suspected rounds, including an 'joint' move from Japan and the United States. The holiday season in Japan led to a thinner trading volume than normal. This is often seen as an 'instigator for intervention', since smaller trades have a larger impact on prices than under normal conditions. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.09%, to 99.86. Meanwhile, the euro fell 0.05%, to $1.1536. Spot gold dropped 0.57%, to $4363.54 per ounce. (Additional reporting in Singapore by Rae Wee and Avinash P, and Purvi Agarwal, in Bengaluru, and editing by Clarence Fernandez and Kate Mayberry; Toby Chopra and Nick Zieminski in Rod Nickel's office)
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Gold edges lower as markets await key US inflation data
Gold fell on Tuesday but remained near the two-month high reached earlier.?Market participants are awaiting important U.S. inflation data that may influence expectations about Federal Reserve policy. Gold spot was down 0.3% to $4,376.31 an ounce by 1:50 pm EDT (1750 GMT), having hit its highest level in June at $4434.84 in earlier sessions in an effort to break above the current 100-day moving average of $4,387.92. U.S. Gold Futures rose by about 0.5%, to $4,441,10. The market is looking forward to this week's data on inflation to confirm that the inflation rate has been tamed, said Peter Grant. He added that a moderated annualized CPI would?continue support gold. After Friday's disappointing U.S. July jobs report, markets lowered their bets on the Fed raising rates in September. This led to a 2.4% gain for gold. Grant stated that "gold is still reasonably well bid as of this point, in light of the disappointing jobs data last week?which eroded expectation for a rate increase in September." According to the CME FedWatch Tool, traders still price in a 50% chance for a hike in September, and an?79% possibility in December. Cleveland Federal Reserve Bank President Beth Hammack said that she believes the time is right to start raising rates slowly to avoid needing to make sharper increases later. Gold that does not yield tends to be less attractive in an environment with higher interest rates. Donald Trump, the U.S. president, responded to Tehran's demands for a peace deal with his own. He demanded that Iran pay compensation for those who died in wars, terrorist attacks, and protests. Oil prices remained near their one-week high. Silver spot fell 1.4%, to $64.8 an ounce. Platinum lost 0.7%, to $1740.37. Palladium dropped 1.3%, to $1365.60. (Reporting by Sukanya Mitra in Bengaluru. Mark Potter, Aurora Ellis and Mark Potter edited the report.
Oil prices rise as supply concerns over the US-Iran agreement increase
The price of oil rose Wednesday morning, as?doubts over a U.S. - Iran peace pact and attacks on two vessels?fueled?concerns regarding Middle East supply disruptions. Industry data also showed that U.S. crude stocks had increased.
Brent futures rose 72 cents or 0.81% to $89.63 per barrel at 0053 GMT. Meanwhile, U.S. West Texas Intermediate crude (WTI), which is a blend of U.S. West Texas Intermediate and West Texas Intermediate, gained 71 cents or 0.85% to $83.91.
The benchmark contracts closed more than $1 higher Tuesday, their highest close since?July 31, and extended gains after a 5% jump on Monday. This was due to the fading hopes of a peace agreement between?the U.S.
On Tuesday, the United States and Yemeni Houthis who are Iran-aligned reported separate attacks against shipping in?the Strait of Hormuz as well as Bab el-Mandeb Strait.
Mohsenrezaei said that Iran's top official in security, Mohsen Rezaei stated on Tuesday, the 'Strait of Hormuz' shipping route will remain closed until the U.S. accepts Iran's conditions for ending the war. These include the'release of frozen Iranian assets' and the end of other conflicts throughout the region.
Shipping data revealed that the Strait of Hormuz saw a drop in traffic to just six vessels on Monday compared to a 10-day-average of around 11. Prior to the war, the daily average of 125-140 vessels traversed the waterway.
A poll conducted on Tuesday showed that U.S. crude and fuel inventories are expected to have decreased last week.
According to market sources, American Petroleum Institute data showed that U.S. crude stocks rose "dramatically" in the week ending August 7, while gasoline and distillate inventories fell.
Sources?said that crude?stocks increased by?9.1million barrels while gasoline and distillate stocks fell by 1.5million barrels and respectively 596,000 barrels from the previous week.
Haitong Futures stated in a report that the crude build exceeded expectations. If confirmed by EIA's?report on Wednesday afternoon, it could ease concerns about tight supply.
The EIA, 'the statistical arm of U.S. Department of Energy', is due to release official numbers at 10:30 a.m. ET (1430 GMT), on Wednesday.
The EIA expects Middle East crude oil supply disruptions to continue through 2027. (Reporting and editing by Lewis Jackson, Sam Li)
(source: Reuters)