Oil prices are advancing again on Tuesday, with Brent approaching $80 a barrel and WTI nearing $75. This comes amid further relaxations of Covid curbs in China, the threat of lower Russian output in response to the G7 price cap, an outage on the Keystone pipeline in the US, and the promise of US purchases around $70.
That’s a lot of supportive factors for the price even in what appears to be an environment tilted towards oversupply. Suddenly there appears more upside risk than downside which could keep prices slipping below $70 for the foreseeable future.
Awaiting CPI data
Gold remains in consolidation ahead of the CPI data. Last month’s release helped drive gold prices higher on the back of a promising Fed statement and jobs report. Of course, recent data hasn’t been quite so bullish for the yellow metal but a weaker inflation reading today could get it back on track ahead of tomorrow’s Fed decision. The key level to the upside remains $1,810, with gold seeing some support around $1,780.
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