Crude oil futures slip 0.42 pc on profit-booking

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Crude oil futures slip 0.42 pc on profit-booking

Meanwhile, West Texas Intermediate (WTI) crude was up 69 cents, or 1.12 per cent, to United States dollars 62.37, while Brent crude, used to price worldwide oils, lost 21 cents, or 0.32 per cent, to USD 65.46 a barrel on the New York Mercantile Exchange.

Saudi Arabia - not least in an attempt to give the planned listing of its state-owned oil giant Saudi Aramco a boost - wants Russian Federation and other producers to keep withholding supplies to prop up prices. "Though the market likes OPEC and its allies' show of unity, we still need to see how USA shale companies will react on higher prices and eventually offset all the efforts of OPEC and others to reduce inventories".

The American Petroleum Institute (API) is set to state its forecast regarding the USA crude supply on Wednesday.

Oil products exports fell to 1.506 million in December while domestic demand rose to 2.294 million bpd. At the same time India, the largest importer of Nigerian crude, reduced its own imports in the previous year, shifting a large part of their demand to US oil.

The Riyadh government is carefully analyzing the future price curve structure in oil markets because it regards prices further out as an important element in achieving a high valuation in what could be the biggest initial public offering in history, the sources told Reuters.

Other commodities such as the gold edged lower on Tuesday, as the dollar's continuous recovery puts the yellow metal under pressure. It hit its highest since January 26 at $1,355.50 on Wednesday, and has gained almost 4pc since it dropped to a one-month low last week.

U.S. crude hit a near two-week high in a choppy session on Tuesday amid inventory declines at a key storage hub and on expectations that top producers could extend cooperation beyond 2018, while Brent fell under pressure from a stronger dollar.

Traders are also paying close attention to another increase in the USA oil rig count.

Inflation fears boost gold, which is seen as a safe haven against rising prices.

Gold last Wednesday enjoyed its best trading day since June 24, 2016 when financial markets were shocked by Britain voting to leave the European Union.

The most active USA crude futures contract for delivery in April was up 68 cents, or 1.1 per cent, at $US63.23 a barrel. The dollar was trading at 107.15 yen, up 0.53 percent.

Retail and institutional investment in gold-backed exchange traded funds (ETFs) continues to grow.

Non-OPEC stocks outside North America are also believed to decline this year and the next. Platinum was up 0.2pc at $998.74, after earlier hitting $1,002.40.

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