Commodity Blog

West Texas Intermediate grade of crude oil rallied today on speculations that US inventories shrank. Brent crude fell. Clashes of Iraqi army with Islamist militants also helped WTI to gain. The United States consider bringing military forces into the country. July futures for delivery of WTI oil rose $0.21 (0.20 percent) to $106.57 per barrel as of 00:56 on NYMEX today. Brent declined $0.16 (0.14 percent) to $113.29 per barrel on ICE.

Gold, which was previously rising with help of tensions in Iraq, did not profit from the situation this time. The most likely reason for such behavior is the two-day monetary policy meeting of the Federal Reserve that has started yesterday and will end today. It is expected that the Fed will continue reducing its monetary stimulus, getting closer to actually raising interest rates, and such outlook reduces need for the precious metal as a safe investment option. August contract for delivery of bullion slipped $0.8 (0.06 percent) to $1,271.2 per troy ounce on COMEX.

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