Indian gold demand to drop this quarter, US Federal Reserve cuts interest rate by 25 bps & US to slap additional tariffs on China

27th July - 02nd Aug

1. OPEC Oil production drops to 8 year lows

Aug 1, 2019

In July, OPEC’s fourteen members pumped a combined 29.42 million bpd, a decline of 280,000 bpd compared to June, according to a private survey that tracks supply to the market from shipping data.

Source: Oil price.com

2. U.S. President Donald Trump to slap a 10% tariff on the remaining $300 billion of Chinese imports

Aug 1, 2019

U.S. President Donald Trump has said he could raise tariffs further if China fails to move quickly to strike a trade deal, following a lack of progress at recent trade negotiations in China. He would slap a 10% tariff on the remaining $300 billion of Chinese imports from next month if no progress is seen in the US-China trade talks.

Source: Reuters

3. US Federal Reserve cuts interest rate by 25 bps

Jul 31, 2019

After its two-day policy meeting, the U.S. Fed cut interest rates, citing concerns about the global economy and muted U.S. inflation. The policymaking Federal Open Market Committee drops the target range to 2% - 2.25% for its overnight lending rate, or 25 basis points from the previous level.

Source: Economic Times

4. WGC Report: Indian gold demand to soften in the third quarter

Aug 1, 2019

India's gold demand is expected to soften in the September quarter as record high local prices dampen buying in the world's second biggest consumer of the precious metal. The WGC has forecast India's gold consumption in 2019 at 750 to 850 tonnes, compared to 760.4 tonnes last year and a 10-year average of 838 tonnes.

Source: Economic Times

5. US economy had expanded 2.1% in the second quarter

Jul 26, 2019

The report from the U.S. Commerce Department showed that the economy slowed less than expected in the second quarter as the Gross Domestic Product increased at a 2.1% annualised rate. Soft U.S. inflation numbers offset better-than-expected U.S. second-quarter economic growth.

Source: Business World

6. Crude supply disrupted after oil tanker seized by Iran

Jul 29, 2019

Crude oil supply risks remain high around the Strait of Hormuz, through which about a fifth of the world’s oil passes. Iranian commandos seized a British-flagged oil tanker in the Gulf last month as an apparent retaliation.

Source: ET Now

7. Baker Hughes Report: US oil and gas rig count fell last week

Aug 2, 2019

The US oil and gas rig count fell by 8 again this week. The total number of active oil rigs in the United States fell by 6 according to the report, reaching 770. The number of active gas rigs increased by 2 to reach 171. Year-to-date, the oil rig count has fallen from 858 active rigs since the beginning of the year to 770, while gas rigs have fallen from 187 to 171 during that same time.

Source: Oilprcie.com

8. EIA Report: Crude oil inventory drops by 8.5 million barrels to 436.50 million barrels

Jul 31, 2019

The EIA reported that crude oil inventories had shed 8.5 million barrels in the week ending July 26, to a total 436.5 million barrels, which was at the five-year average for this time of the year. This compares with a 10.8-million-barrel inventory draw a week before. The markets expected an inventory decline of 1.82 million barrels for the week ending July 26.

Source: Reuters