Huge uncertainty for oil
There remains immense uncertainty over the outlook for crude demand and supply which is leading to plenty of volatility in oil markets. The price has rebounded in recent days after WTI fell close to $70, the level at which the White House has previously indicated it will start refilling the SPR following a year of repeatedly drawing it down.
With China finally navigating away from zero-Covid, which alone brings huge uncertainty for next year, the global economy slowing, Russia continuing its war in Ukraine, and OPEC+ seeking to maintain balance, I don’t expect volatility to subside in any significant way soon.
Gold eyeing Santa rally
Gold is paring its post-CPI gains ahead of the US interest rate decision. It finally broke $1,810 but failed to hold on and eventually ended the day back around that level. A dovish Fed today could seal the deal and deliver a Santa rally for the yellow metal in the final weeks of the year.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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