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Crude oil futures closed higher on October 18, tracking rising global oil demand. Investors are watching the report on U.S. crude oil inventories this week.
- WTI crude futures were up 16 cents, or 0.2%, at $82.44 a barrel.
- BRENT crude futures were down 53 cents, or 0.6%, at $84.33 a barrel.
The opening of many economies continues to increase the forecast for oil demand, which is pushing crude oil contracts at the moment. Meanwhile, the U.S. government has announced it will allow fully vaccinated travelers from abroad to re-enter the country.
The easing of these measures is expected to boost the U.S. aviation and tourism industries after they were hit by previous lockdown measures.
The IEA said the rise in coal and natural gas prices will encourage power producers to use oil and diesel instead.
However, both crude oil futures fell from their daily highs following the Federal Reserve’s (Fed) report that total U.S. industrial production fell 1.3% in September. Total industrial production measures the inflation-adjusted value of output from factories, mines, and utilities.
Investors should keep an eye on the weekly U.S. crude oil inventory report. This is due to be published by the US Energy Information Administration (EIA) on Wednesday, October 20.
Gold contracts were pressured by the rise in U.S. Treasury yields.
- Gold contracts were down $2.6, or 0.15%, at $1,765.7 per ounce.
- Silver was down 8.5 cents, or 0.36%, at $23.264 an ounce.
- Platinum contracts were down $21, or 1.98%, at $1,037.9 an ounce.
- Palladium fell $63.50, or 3.1%, at $2,013.10 an ounce.
The yield on 10-year U.S. Treasury notes rose to 1.593%.
The Bank of England (BoE) is likely to raise interest rates for the first time since last year’s coronavirus outbreak in response to rising inflation.
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Tuesday, October 19, 2021