Crude prices are rising after the stockpiles posted a modest gain and a decent improvement with demand. The EIA crude oil inventory report showed that demand for crude oil and gasoline improved, while distillates softened. Crude exports surged 21.6% as shipments abroad reached the highest levels since November. Gasoline prices have not yet been impacted as stockpiles remain elevated, touching the highest levels since March.
Lately, it seems this oil market has a tendency to lean towards a bullish spin after any major oil event. WTI crude should find resistance ahead of the $83.50 level, but if that does not hold, we could see a mini breakout.
If risk appetite continues to take a big hit from the tech-driven selloff, that should also weigh on crude prices.
Gold prices are locked into consolidation mode as traders await to see how the Fed reacts to growing fears of a macro slowdown. Risk aversion is running wild but gold is not breaking because a slowdown will confirm disinflation trends will remain and a recession certainty could lead to rate cuts at the end of the year. Gold might trade between the $1935 and $1960 range until we get to the Fed event.
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