Crude prices turned positive after Exxon noted that they see oil supplies tight as some producers pull back. The oil market is awaiting a couple of major events, both the FOMC decision and the OPEC+ meeting on output.
The EIA reported that cold weather made November US output dip for the first time since May. Oil output from the US seems like it won’t go up that much more so the oil market supply picture will hinge on what OPEC does. This week, OPEC+ is expected to keep output steady as they assess how strong economic recovery comes out of China.
WTI crude looks like it might find a home below the $80 a barrel level until we see further progress with China’s high-frequency indicators.
Gold prices are rising after another round of economic data showed the labor market is cooling and the outlook for the economy remains weak. Fed rate hike bets continue to get slashed as Wall Street grows confident that this wave of economic weakness will do the trick to get inflation below 4%. Bad economic news is once again good news for gold as it will continue to cement bets that a Fed pivot could happen by the end of the year.
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