Crude oil price plunged to as low as 68.9 Tuesday after release of worse than expected US consumer confidence. However, huge decline in crude inventory together with less-than-expected gain in refinery stockpiles helped the black gold pare some loss. On net, the benchmark contract slid -2.2% to settle at 69.89. Others in the energy complex also dropped with RBOB gasoline, natural gas and heating oil losing -2%, -2.8% and -3.7%, respectively.

In the US, the Conference Board consumer confidence index surprisingly retreated to 49.3 in June, after rising for 3 month, from 54.8 in May. The market had anticipated a further rise to 55.1. The result, while remained well-above the February trough at 25.3, was among the worst readings in previous recessions and this made investors doubt the progress of economic recovery.

API reported that crude inventory drew -6.82 mmb, compared with consensus of -2 mmb, to 349.8 mmb in the week ended June 26. Although gasoline and distillate stockpiles rose +0.21 mmn and +0.72 mmb, respectively, the increases were lower than market anticipation and less severe than in previous weeks. The result probably indicated the report by the US Energy Department may give pleasant surprise too.

The August contract trades above the 70-level but within a narrow range in Asia today. While awaiting the inventory report by the US Energy Department, some data released in the Asian Pacific regions were quite encouraging. China's PMI rose to 53.2 in June from 53.1 in May. The reading has stayed above 50 for the 4th consecutive month, indicating expansion in the manufacturing sector. In Australia, retail sales surged +1% mom in May after rising +0.3% in the prior month. Analysts had expected a modest improvement of +0.5% only. These were probably positive macro factors supporting oil to stay around 70 today.

Precious metals plummeted yesterday with gold and silver slipping -1.4% and -2.7% to 927.4 and 13.6, respectively. Rebound in USD against the euro after the disappointing consumer confidence data particularly pressure the precious metals. PGM also fell but at a seriously than gold and silver. Platinum and palladium contracts dropped -0.7% and -0.2% to settle at 1185.3 and 250.95, respectively. Today, gold price recovers slightly as driven by rebound in oil price and possible bargain hunting by physical buyers. Silver also edges higher in tandem.