EIA crude oil inventories are higher than market expectations
The US Energy Information Administration (EIA) crude oil inventories surged by 13.834 million barrel, it show that higher than the market expectation of an increase of 4 million barrels in last week. During the period, gasoline inventories increased by 7.542 million barrels, which was also much higher than market expectations. As for the distillate stocks, it unexpectedly decreased by 2.194 million barrels. Unexpected surge in US crude oil inventories, coupled with some Saudi officials admitted that the current crude oil production capacity of Saudi Aramco (Aramco) has exceeded 12 million barrels per day, and is still rising. The above-mentioned news all exacerbated market concerns about the oversupply of the crude oil market.
S & P 500 falls, showing slowdown in manufacturing and job markets
Due to the spread of the epidemic on Wednesday, the S & P 500 recorded the biggest decline in two weeks. At the same time, US data showed that the manufacturing and job markets continued to slow down, which caused gold buying to rebound and gold hit the $ 1600 mark. However, it should be noted that the cost of obtaining US dollars in the market is still very high, highlighting that the liquidity demand of the US dollar is still strong. Pushing the US dollar to test the 100 mark repeatedly in recent trading days will continue to suppress the price of gold for a period of time. Concerned about the number of initial jobless claims, the market is expected to continue to break record highs.
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