Crude oil prices enjoyed a spirited advance yesterday, with a series of supportive catalysts offering on-going support for what became the largest one-day gain in two months.

First, Chinese energy giant Sinopec said it will not import any more oil from the US or Iran in the second half of the year, predicting 3-5 percent drop in crude processing. Then, a member of International Group, the insurer covering close to 90 percent of the world’s tankers, said US sanctions have “severely compromised” its dealings with Iran. Taken together, both headlines spoke to diminished global supply prospects.

The final piece of the puzzle came by way of EIA inventory flow data. It showed that US stockpiles shed a hefty 5.84 million barrels last week, a far larger drawdown than the 1.86 million drain expected by economists ahead of the data release. The outcome proved to be market-moving despite being telegraphed in analogous API data published Tuesday.

Gold prices were little changed. The yellow metal attempted to extend the rally traced out over the preceding three sessions intraday but momentum faded before the release of minutes from Augusts’ FOMC meeting. Investors’ caution was rewarded as the document set the stage for continued interest rate hikes, as analogous API data. The metal finished the session with a narrow loss.

GOLD, CRUDE OIL MAY WEAKEN ON US DOLLAR REBOUND

Looking ahead, US PMI data amounts to the only eye-catching bit of scheduled event risk. That seems unlikely to be market-moving however amid anticipation of Friday’s Jackson Hole symposium speech from Fed Chair Jerome Powell.

With that in mind, a rebound in the US Dollar may prove to define for commodities prices. The greenback tellingly rose alongside Treasury bonds while most regional bourses fell in Asia Pacific trade, hinting at the re-emergence of risk aversion as the catalyst. Fed worries about trade wars and emerging markets turmoil along with political instability in Australia seemed to be at work. Three ministers quit the government of embattled Prime Minister Malcolm Turnbull, setting the stage for another confidence vote.