Oil steady as Laura hammers Gulf Coast
Oil prices are steady around the range highs this week as Hurricane Laura causes havoc on the Gulf Coast.
The storm, referred to as “unsurvivable” by the National Hurricane Centre, has already been raised to category 4 and isn’t far from category 5. The destruction is could cause is considerable.
It may therefore be surprising that oil prices haven’t risen further given the forced closure of production and refining facilities. Perhaps traders are waiting to see what the damage is but the limited impact so far may also just be a reflection of the current oil market dynamics. Temporary disruptions are easily covered.
Gold eases ahead of Powell comments
Gold prices are easing off again as we await Jerome Powell’s appearance.
The yellow metal jumped off its lows around $1,900 on Wednesday before running into some resistance around $1,960 as US yields slipped off their highs ahead of the event. There seems to be very high expectations so whatever happens, we’re going to see some volatility in these markets.
I fear Powell won’t be able to keep up and traders will make their frustrations know with a spike in yields, lifting the dollar in the process and whacking gold again.