• Oil prices extend gains as U.S. data shows a drop in inventories
  • Asian shares follow wall street higher on easing trade tensions
  • Egypt’s stock market was the top regional performer on Wednesday
  • The dollar remains on the defensive, gold prices were unchanged

Oil prices

Oil prices added gains early on Thursday as data showed that United States commercial crude inventories fell by 2.6 million barrels in the week to August 24, to 405.79 million barrels. Expected disruptions in Iran and Venezuela also pushed prices higher.

International Brent crude oil futures LCOc1 were at $77.21 per barrel at 0114 GMT, up 7 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 14 cents at $69.65 a barrel.

"Oil prices rose on the back of an unexpected U.S. inventory draw, the second week in a row of declines, together with gasoline demand reaching a record high," William O'Loughlin, investment analyst at Australia's Rivkin Securities, told Reuters.

“The looming sanctions against Iran are beginning to impact oil supply lifting crude prices,” Alfonso Esparza, analyst at futures brokerage OANDA, told Reuters.

Global markets

Asian shares tracked early on Thursday a rise on Wall Street overnight, as investor sentiment was boosted by hopes that the current North American Free Trade Agreement (NAFTA) negotiations will lead to a further easing of global trade tensions, as Canada rejoined the talks.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent.

Overnight on Wall Street, the S&P 500 and the Nasdaq hit record highs for a fourth straight session as technology stocks pushed indexes higher.

“Recent NAFTA negotiations have helped clear some of the uncertainty the markets had been feeling, leading to hopes U.S.-China trade tensions will take a turn for the better,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, told Reuters.

Middle East markets

Egypt’s stock market outperformed its regional peers again on Wednesday, as buying interest returned to the market.

Cairo’s main index added 1.5 percet mainly boosted by a jump in petrochemical shares with Sidi Kerir Petrochemicals surging 5.2 percent and Abu Qir Fertilizers and Chemicals rising eight percent.

Saudi Arabia’s index retreated 0.2 percent, as Saudi Telecom dropped 1.1 percent and Riyad Bank was down 0.6 percent.

Dubai’s index jumped 0.5 percent as Emaar Properties bounced back from the prior losses during the week, rising 1.4 percent and Emirates NBD added 1.1 percent.

Neighbouring Abu Dhabi’s index edged up 0.1 percent as First Abu Dhabi Bank added 0.3 percent and Union National Bank was up 0.8 percent.

Qatar’s index retreated 0.2 percent as Qatar First Bank dropped 1 percent, Qatar International Islamic Bank fell 1.2 percent, and Masraf Al Rayan lost 0.8 percent.

Oman’s index added 0.5 percent, while Kuwait’s index was flat and Bahrain’s index dropped 0.4 percent.

Currencies

The dollar index was on the defensive on Thursday against a basket of six major currencies, trading near a four-week low of 94.434.

The dollar was flat at 111.68 yen.

Precious metals

Gold prices were steady early on Thursday.

Spot gold was mostly unchanged at $1,205.58 an ounce at 0028 GMT. Prices hit their highest since Aug. 10 at $1,214.28 on Tuesday.

U.S. gold futures were also mostly steady at $1,211.82 an ounce on Wednesday.

 

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(Writing by Gerard Aoun; Editing by Mily Chakrabarty)

(gerard.aoun@thomsonreuters.com)

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