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Oil hovers above USD 100, gold struggles

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Oil

Crude prices tentatively breached the USD 100 level after the Bank of America fund manager survey showed global growth optimism was at an all-time low. ​ Earlier in London, oil was declining after reports Congo was looking to bolster up its oil sector by offering 30 oil and gas exploration blocks for licensing. ​ ​

The oil market is swinging all over the place as the volatility with the global crude demand outlook has been head-spinning. ​ Crude prices pared losses after reports that Chinese demand for Saudi oil was improving. ​ The oil market is still very tight but energy traders are unconvinced how the demand outlook will hold up over the next few months. ​

The US dollar has been declining over the past few days and that has been welcome news for oil, but another major move for the greenback might not happen until we see what happens with the Nord Stream 1 pipeline restart and the ECB policy decision. ​

WTI crude seems poised to seesaw around the USD 100 a barrel level. ​

Gold

Gold prices continue to hover above the USD 1700 level despite a weakening US dollar. ​ After three days of dollar weakness, gold still can’t make a meaningful move higher, which means sellers are still in control. ​ Gold needs China’s outlook to improve before it can muster up a meaningful rally and that might take time. ​ Too much uncertainty remains with China’s COVID situation, rising property risks, and lack of urgency from the PBOC to ease.

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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.
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