XAGUSDSilver

Crude oil prices decline as Saudi spot supplies are injected, while cotton and lumber losses worsen

Markets balance between US inventory pressure and Saudi spot selling against strong gains in gasoline funds and silver. Oil prices witnessed a notable decline during the session, with WTI (CLUSD) falling by -2.50% and Brent (BZUSD) by -1.63%. This decline is driven by American Petroleum Institute (API) data which showed a significant inventory increase of 7.14 million barrels, compared to expectations that indicated a decrease of -1.8. Saudi Arabia's decision to sell 20 million barrels of oil in the spot market following a major pipeline disruption also contributed to increasing available supply, which eased geopolitical concerns and pressured global prices. The gasoline fund (UGA) recorded a strong rise of +4.46%, driven by concerns over a diesel export ban in the United States as prices reach record levels, and China considering restricting fuel exports. In the metals market, silver contracts (SIUSD) rose by +2.25%, coinciding with the London Metal Exchange launching electronic options trading to enhance efficiency. This positive performance comes despite weak economic data, as the Empire State Manufacturing Index recorded only 7.6, which is much lower than the expected 14.75 and the previous value of 20.6. Cotton contracts (CTUSX) led the declines with a rate of -4.26%, and lumber contracts (LBUSD) also fell by -1.32%. This decline reflects weak demand for industrial and construction raw materials, which is consistent with disappointing data from the manufacturing sector in New York. The 30-year mortgage rate also rose to reach 6.97% compared to the previous value of 6.85%, which increases pressure on the construction sector and demand for lumber, in light of an economic environment characterized by slowing industrial activity and rising financing costs.