Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Oil Climbs as U.S. Supplies Shrink to Lowest Since Start of Year

Oil surged to an eight-week high after the government said U.S. stockpiles shrank to levels last seen at the start of the year. Futures rose 1.8 percent in New York. Crude inventories declined by 7.21 million barrels last week to the lowest since Jan. 6, according to data from the Energy Information Administration Wednesday. Gasoline stockpiles fell for a sixth week to the lowest level since December, the data showed. “The primary driver behind the rally is that you’ve got more inventory d...
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Amber Waves of Grain

Of the 14 commodities we track closely at U.S. Global Investors, wheat rose to take the top spot for the first half of 2017, returning more than 25 percent. The grain was followed closely by palladium—used primarily in the production of catalytic converters—which gained 24 percent. To view our ever-popular, interactive Periodic Table of Commodity Returns, click here. Between the start of the year and June 30, the Bloomberg Commodity Index contracted 4.03 percent, with energy weighi...
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Contributed Commentaries It’s Do or Die for Gold and Silver

(Kitco News) - Being bullish on the metals has been painful; there has been a dramatic drop off in interest as these markets have mostly drifted or got pounded lower. We were and still are bullish but our line in the sand comes right here in the $1,220 area in gold(puking out under $1,200) and the $16.00 level in silver (trading at $15.98, puking out at $15.70). The metals story has been very conflicted with the weight on the dollar and the support levels the metals had the weakness is surpri...
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Oil dives 5 percent on surprise build in U.S. crude, gasoline stocks

By David Gaffen | NEW YORK Oil prices slid 5 percent on Wednesday to a one-month low, after an unexpected increase in U.S. inventories of crude and gasoline fanned fears that output cuts by major world oil producers have not done much to drain a global glut. Crude stocks in the United States grew 3.3 million barrels to 513 million barrels, according to the U.S. Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a d...
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Oil rises above $52 as Saudis and Russia back longer supply cut

By Alex Lawler | LONDON Oil hit its highest in more than three weeks on Monday, topping $52 a barrel after Saudi Arabia and Russia said that supply cuts need to last into 2018, a step towards extending an OPEC-led deal to support prices for longer than first agreed. Energy ministers from the two countries said on Monday that supply cuts should be prolonged for nine months, until March 2018. That is longer than the optional six-month extension specified in the deal. Global benchmark Bren...
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Is It Time for OPEC to Rebalance the Crude Oil Market?

By Gordon Kristopher | May 1, 2017 7:51 am EDT Crude oil prices   June WTI (West Texas Intermediate) crude oil (XLE) (USO) (XOP) futures contracts rose 0.7% and closed at $49.33 per barrel on April 28, 2017. The S&P 500 (SPY) (SPX-INDEX) fell 0.2% on April 28, 2017. Prices rose due to optimism that a possible extension of major producers’ production cut deal in 2H17 could remove the oil market’s surplus. Iran and major oil producers’ deal   On April 29, 2017, Iran’s Oil Minister Bij...
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Oil touches three-month lows as U.S. supply swells

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil hovered around three-month lows on Monday, as rising inventories and drilling activity in the United States, the world's top energy consumer, offset optimism over OPEC's efforts to restrict crude output and reduce a global glut. After more than two months of reduced production from the Organization of the Petroleum Exporting Countries, the market is facing evidence that U.S. production remains high and global markets remain oversupplied. "The...
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Stocks rise as jobs data points to rate hike, crude falls

By Herbert Lash | NEW YORK Crude oil resumed a downward drift and global equity markets rose on Friday after a robust U.S. jobs report drove home the strength of the American economy and set the stage for the Federal Reserve to raise interest rates next week. U.S. employment increased more than expected in February and wages rose steadily, providing the Fed a green light to raise rates at a policy-setting meeting on March 15. Nonfarm payrolls rose by 235,000 jobs as the construction sec...
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Oil prices rise as OPEC output cuts drain stocks

By Scott DiSavino NEW YORK (Reuters) - Oil prices edged higher on Tuesday ahead of weekly U.S. inventory data on evidence the global market is tightening as lower production by OPEC and other exporters drains stocks. Increased drilling in the United States, however, could keep a lid on prices. Brent (LCOc1) futures gained 21 cents, or 0.4 percent, to settle at $55.44 a barrel, while U.S. West Texas Intermediate (CLc1) gained 43 cents or 0.8 percent, to $53.18 per barrel. That put WTI up fo...
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