It was a busy day for energy traders after Germany signaled they were ready to support a gradual ban on Russian oil, the EIA crude oil inventory report posted a small crude build, and King Dollar continues to weigh on commodity prices. Too much to digest, but the key takeaway is that oil prices will likely remain above the USD 100 level as long the dollar doesn’t have another massive rally.
The big news of the day is that Germany will support a gradual ban on Russian oil, but that won’t happen immediately so crude prices were unable to turn positive.
Gold got a double dose of bad news as US stocks staged a comeback, dampening demand for safe-havens and as King Dollar continued to rally, rising above the pandemic peak. Gold is very vulnerable to another slide if risk appetite gets another boost on optimism that China could be ready to relax some of its lockdowns.
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