Oil higher despite surprise inventory build
Oil prices are edging higher once more even as the EIA reported a surprise increase in inventories last week. The market remains extremely tight and that is keeping the upward pressure on crude prices. The OPEC+ increase was more a token gesture than one of substance and the continued reopening of China means demand is going to rise further. To make matters worse, oil workers in Norway could begin strike action this weekend causing supply disruptions to a relatively small amount of output, to begin with.
Gold steady ahead of US inflation data
Gold is back above USD 1,850 but continues to fluctuate in the same ranges it has for many weeks now. For gold, it’s all about the US inflation data on Friday and the Fed next week. Any surprises in the inflation data could shake things up in the markets and see the yellow metal break the recent range, perhaps even quite aggressively. While a US recession isn’t the base case at the moment, a few more nasty surprises on the inflation front could see that change.
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