Oil turns lower on recession risk
Oil has turned lower since the open, in line with the moves we've seen in equity markets. It would appear the economic reality isn't being lost everywhere and the big downside risk for oil in recent weeks - recession - is weighing on the price once more. Still, while WTI has slipped back below USD 97, Brent continues to hover above USD 100 so the tightness in the market continues to support it.
Interestingly, a US administration official suggested today that they are optimistic that some positive news may come from the next OPEC meeting. Whether this is just an inkling or a view based on assurances made to President Biden isn't clear but it certainly makes the gathering next week all the more interesting.
Buoyed by the Fed and US data
Gold is having a lovely time in light of the Fed meeting and the US GDP release. What could be better for the yellow metal than slower tightening, markets pricing in a reversal early next year and a technical recession? It's been a torrid time for gold but moments like these call for a safe haven inflation hedge and it is seemingly stepping up.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
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