Oil below USD 100 after IEA and EIA
Oil prices are slipping again today after falling more than 5% on Wednesday. The combination of the IEA reserve release and EIA inventory data sent prices tumbling yesterday and suddenly a world of double-figure oil looks possible.
That wouldn’t have been something to celebrate only a few months ago but a lot has changed since then. There are still plenty of upside risks to those prices despite the best efforts of those involved in the SPR release. But 240 million barrels is a substantial move that will help to offset the disruptions we’ve seen and allow time for US shale and OPEC+ to fill the void.
Gold sideways as other markets react to the Fed
The consolidation we’ve seen in gold in recent weeks has not been interrupted by the hawkish commentary we’ve had from the Fed over the last few days. While other areas of the market have reacted strongly to the comments, gold has been steady and if anything, the ranges have tightened.
Perhaps this is a sign of the enormous uncertainty in the outlook or the combination of high inflation and economic risks associated with it, and events elsewhere. There’s clearly a reluctance to let go of a safe haven and inflation hedge that’s been so sought after this year.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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