Oil and gold prices boosted on Thursday; Why’s that?

Oil prices increased on Thursday, recovering early losses, as crude stockpiles in the United States, the world’s largest oil consumer, dropped more sharply than anticipated as refining output increased and exports rose.

Brent crude oil futures surged by 17 cents, which equals 0.3%, and settled at $69.13 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures increased by 9 cents, or 0.1%, to $65.72 a barrel.

Both benchmarks reached their highest since mid-March on May 5, before retreating to end little changed following two days of gains.

According to Citi analysts, easing COVID-19 restrictions in Europe have led to a pick-up in fuel demand.

According to the Energy Information Administration, U.S. crude stocks declined more than anticipated last week as refining output rose and exports surged.

Crude inventories dropped by 8 million barrels in the week to April 30.

Meanwhile, U.S. gasoline stocks surged by 737,000 barrels in the week.

Remarkably, COVID-19 restrictions in the United States and parts of Europe are easing. However, virus cases are still soaring in major crude oil importers India and Japan.

A pullback in the greenback boosted demand for gold

On Thursday, gold prices increased as a pullback in the U.S. dollar, and Treasury yields boosted demand for the precious metal.

Spot gold rose by 0.4% and traded at $1,794.30 per ounce, while U.S. gold futures surged 0.6% to $1,794.20 per ounce.

Benchmark U.S. 10-year Treasury yields declined below 1.6% and wavered close to a one-week low hit on Tuesday, decreasing the opportunity cost of holding non-interest-bearing gold.

The U.S. dollar index fell by 0.1%, moving further away from a near two-week high hit on Wednesday.

Among other precious metals, silver gained 1% and settled at $ 26.77 per ounce. Palladium rose 0.4% to $2,984.97 per ounce after hitting a lifetime high of $3,017.18 on Tuesday on supply shortfalls. Additionally, platinum declined by 0.5% and traded at $1,230.66