Oil rebound extends, gold shines


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

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.