Crude oil price rallied to as high as 62.26 Wednesday after the release of bullish petroleum report. However, the dovish minutes released by the Fed pared gains and the black gold eventually close 3.2% higher at 62.04. In Asian session, the benchmark contract consolidates below 62 level.

The inventory report by the US Energy Department was bullish with large withdrawal in both crude and gasoline stockpiles. The 2.11 mmb decline in crude inventory was driven by low import despite another week of decline in refinery runs. The sharp fall in gasoline stockpiles was due to the 0.32 mmb rise in demand and a 0.32 mmb drop in refinery runs. While distillate reported another week of inventory gain, the result came in lower than consensus. Moreover, on the news front, the Obama Administration's plan to accelerate the introduction of stricter standards for passenger cars and light trucks is expected to tighten the distillate market. The new law requires automakers to meet average efficiency standards of 35.5 miles/ gallon by 2016, 4 years sooner than previously planned. The plan will reduce green -gas emission by 900M metric tons through 2016.

In the FOMC minutes for the meeting on April 28-29, it's unveiled that some members believed the Fed should boost its purchase of assets to revive economic growth, though eventually the group decided to put it on hold in the last meeting. Furthermore, the Fed revised down its economic forecasts despite signs 'pointing toward economic stabilization' and 'prospects for a trough in the housing market's downturn'.

The policymakers anticipate GDP will contract -1.3% to -2% yoy in 4Q09 with unemployment reaching 9.2-9.6% by then. This is worse than January's projection of contraction of -0.5% to -1.3% yoy and unemployment of 8.5%-8.8%. CPI will increase by +0.6 to +0.9% in 2009, compared with previous estimates of +0.3% to +1%. Concerning 2010, economic recovery should come in weaker than previous forecast. GRP will grow by +2 to +3%, compared with January's projections of +2.5% to +3.3%. Unemployment rate will be 9% while previous estimate was 8.3%.

Profit-taking was also triggered in stock market with the Dow Jones Industrial Average sliding -0.62% and S&P 500 Index losing -0.51%. In Asia, the MSCI Asia Pacific Index drops 0.6% while Japan's Nikkei 225 Stock Average plunged 1.24%. Investors worry the deeper recession projection by the Fed will diminish corporate earning prospects. Also causing the decline is strength in yen which affect the exports business in Japan.

Gold price extends Wednesday's 1.2% gain to 942 today. Strength in gold is driven by slide in USD which fell 1.1% against the euro and 1.9% against the pound. The dollar index plunges to 80.9 and is expected to decline further to 77/78 level. The fact the some FOMC members preferred to extend the asset buying program is bearish for USD but bullish for gold as potential increase in money supply will cause dollar's depreciation and inflation.

In a report by World Gold Council, it's shown that gold demand has soared 38% yoy to 1015.5 metric tons in 1Q09 as spurred by robust investment demand which rose by more than 3 times to 595.9 metric tons from the same period last year. However, jewelry demand declined 24% to 339.4 metric tons during the period.