Home/Central banks/Commodities/News events/Newsfeed/Oil

Oil pares losses, gold dips

Share Print 0

Oil

Crude prices dropped after the China National Food and Strategic Reserves Admin (SRB) stated they are working on the release of crude reserves. WTI crude has dropped almost nine dollars since the recent highs as energy traders appear to have mostly priced in the impact of a coordinated SPR release between the US and China.

The oil market deficit will still remain despite the tapping of reserves and the next big move for prices will most likely depend on the weather.  Natural gas prices may be the key short-term driver as Russia plays hardball with Europe. Any natural gas shortages will lead to additional crude demand as the scramble for alternative energy sources intensifies.

Gold

Gold prices need a fresh catalyst after a wave of monetary policy decisions showed a diverging view of how central banks are battling inflation. Gold is stuck in wait-and-see Fed mode and that could remain the case till the end of the year. Rising concerns of growing restrictive measures in Europe could lead to short-term growth concerns that have yet to boost bullion.

Gold may consolidate between the USD 1850 and USD 1880 level until Wall Street gets a better handle on where risk appetite is going next.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
, , , , ,
Back to Top