Oil pops on Keystone Pipeline leak, gold edges higher


Crude prices spiked higher after the Keystone Pipeline was shut after a leak in Nebraska. ​ Earlier, Tribeca Shipping Agency reported 19 oil tankers are still awaiting passage through Turkey’s Bosphorus Strait. ​ Today’s headlines appear to be only short-term negative for supplies but don’t change anything with the deteriorating crude demand outlook. ​

The initial spike following the Keystone Pipeline leak news was short-lived but with prices so close to the $70 level, we might not see much more weakness. ​ The $70 level remains key for oil as that is where the Biden administration is expected to start to consider refilling the strategic petroleum reserve. ​


Gold prices are flirting at the $1800 level as the dollar softens ahead of a key round of inflation data. ​ It starts on Friday with an expected deceleration with wholesale price gains and later that morning the University of Michigan inflation expectations that are expected to remain steady. ​ On Tuesday, we will get the November Inflation report that should indicate that price pressures continue to ease and on Wednesday we get the Fed. ​ The FOMC is expected to downshift to a half-point pace but traders will care to see what members have to say about the trend of inflation and where rates could peak.

Gold looks like it will find a home around the $1800 level until we have better indications of the path of prices. Key resistance remains the $1830 level with decent support at the $1750 region.

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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.