Oil rises on Ukraine, gold extends gains

Oil rises after Kremlin comments and IEA report

Oil prices are rising once again today, with Brent and WTI now back above USD 100. It has been pushing higher throughout the day after the Kremlin pushed back against reports of substantial progress in ceasefire talks. It feels like a real setback just as things appeared to be heading in the right direction which had allowed oil prices to fall considerably from the highs.

Also contributing to the uplift is IEA’s assessment of the oil market with Russian exports seen declining by around three million barrels per day. That’s far more than the lost demand growth as a result of high prices which further tightens the market. Whether that will be enough to convince certain OPEC+ members to raise output and be less led by Russian assurances is another thing. There’s certainly growing support for the group to do more.

Gold downside limited in the current environment

Gold prices are pushing higher for a second day after briefly slipping below USD 1,900 on Wednesday. A combination of economic concerns, high inflation, and a dip in risk-appetite on the Kremlin comments have contributed to the spike in the yellow metal.

At least two of these aren’t going away any time soon and there’s nothing predictable about the actions of Vladimir Putin so gold should remain relatively well supported for some time yet. That may not mean we’re hitting record highs but it should limit the downside to some extent.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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.