Commodities: Energy futures mixed despite stock draw in the States

Commodity prices were edging higher in the middle of the week, buoyed by data showing a larger than expected drop in US crude oil inventories and an improved risk appetite in financial markets.

As of 1744 BST, the Bloomberg commodity index was rising by 0.15% to 76.81 alongside a dip in the US dollar spot index of -0.03% to 98.1610.

West Texas Intermediate crude oil futures were falling by 0.18% despite the latest weekly US Department of Energy inventory data showing a 2.7m barrel (consensus: -1.89m barrels) drop in commercial crude oil inventories to reach 437.8m barrels.

"The latest figures showed another strong week for both inputs to refineries and gasoline demand," said Oliver Allen at Capital Economics following the release of the DoE figures.

"But looking ahead, we expect a seasonal dip in gasoline demand to be compounded by a slowing US economy."

Nonetheless, similarly-dated Brent was adding 0.97% to $60.61 a barrel, alongside moderate gains for gasoline and heating oil futures.

"Goldman Sachs issued a note expecting rate cuts at the next 2 Fed meetings to maintain orderly bond markets but the main events this week will be Jerome Powell’s speech at Jackson Hole, followed by the G7 summit in France at the weekend/Monday," chipped in traders at Sucden Financial.

Metals prices were little changed overall, although three-month copper on the LME finished at $5,732 per metric tonne after starting out from $5,720 a tonne.

Among agricultural futures, December cotton #2 on the ICE was adding 1.12% to $59.80 a barrel and the contract for cocoa was up by 1.70% to $2,211 a metric tonne.