Oil rebound extends, gold shines

Oil

Crude prices got a boost from a cool inflation report that supports the case that the US economy could still have a soft landing. The oil market can’t justify prices below the $70 level even if bumpy times are ahead. ​ Disruptions from the Keystone Pipeline remind us how tight the oil market remains. ​ China will struggle to deliver a complete reopening until early next year, but that demand outlook should start to improve soon. ​ ​ ​ ​

The OPEC monthly report noted that, “The year 2023 is expected to remain surrounded by many uncertainties, mandating vigilance and caution.” OPEC doesn’t have a crystal ball for China’s demand outlook and they will try to be nimble until their reopening is clearly headed in the right direction. ​

Oil’s downtrend has been in place since early June and that should come to an end over the next month or two, as the world’s two largest economies should have improving crude demand outlooks. ​

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. 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. Most recently 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 and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya