Crude prices were weighed down by a strong dollar and rising expectations that OPEC+ might not be as disciplined in gradually increasing output next year. Energy traders are waiting to find out when the UAE and the Saudis will formally end their standoff. We will quickly find out how aggressive OPEC members will be in trying to secure additional market share. Despite all the tightness in the market, it seems that glut concerns might not be too far away.
The latest OPEC monthly report emphasized they see a gradual recovery demand story in 2022. Global oil demand is expected to increase by 3.3 million barrels per day in 2022.
WTI crude could drift lower until clarity emerges over the ratification of OPEC+ production and as everyone awaits next month’s resumption of Iran nuclear deal revival negotiations.
Something special is happening in the gold market. The dollar is stronger, stocks are mostly weaker, and safe-haven flows are not just going to Treasuries. Gold is seeing safe-haven flows as investor anxiety increases. Today, Fed Chair Powell delivered no surprises, he served up his best dovish hits and that was enough to support the idea of lower for longer.
Gold is testing critical resistance and could see strong technical buying if prices close above the $1,835 level. Momentum buying could easily take gold to the $1,850 level.
Dogecoin co-creator Jackson Palmer delivered some harsh crypto comments overnight on Twitter that unnerved some investors. A key insider to cryptos just went off and probably scared off many investors that were contemplating buying cryptocurrencies.
Bitcoin and Ethereum both tumbled over 3% but still remain above their recent lows.
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