Commodities Highlights:

  • Oil prices slipped as US Crude, gasoline, and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.
  • The American Petroleum Institute (API) estimated a large crude oil inventory build of 8.731 million barrels for the week ending May 22, compared with analysts' expectations for a draw of 1.9 million barrels. EIA Weekly Inventory Status report will be out tonight.
  • Gold hit two-week lows below $1,700 per ounce on Wednesday before settling above that level as U.S.-Sino tensions escalated from remarks by Washington that the Hong Kong territory was no longer autonomous of China. Still gain is looking limited, as optimism around the re-opening of the world economy will reduce the safe-haven appeal of the yellow metals.
  • Asian shares and U.S. stock futures rose on Thursday as growing optimism about economic recovery from the coronavirus pandemic trumped immediate concerns about a standoff between the United States and China over Hong Kong.