Crude Oil Prices Down as OPEC Struggles to Offset US Supply Gain

Talking Points:

  • Crude oil prices decrease as oversupply worries take core theatre again
  • Gold prices aim to extend gains as “Trump trade” unwinding heats up
  • Where will bullion and wanton oil prices be in 3 months? See a forecasts

Crude oil prices fell amid reports that correspondence with a OPEC-led prolongation cut settle fell to 92 percent in Jun from 110 percent in a before month. That was compounded by a EIA observant US shale outlay will strike 5.58 barrels per day in August, an all-time high, as good as news ofan boost in outlay from Libya.

The spotlight now turns to weekly API register upsurge statistics. Official EIA information are approaching to uncover a 4.2 million tub outflow on Wednesday. The API imitation will be judged opposite that forecast, with a incomparable drawdown expected to boost prices while a smaller one might harm them.

Gold prices rose for a second day as cooling Fed rate travel bets bolstered a interest of non-interest-bearing and anti-fiat assets. More of a same might be forward as another US medical remodel bid ends in failure, triggering broad-based unwinding of a supposed “Trump trade”.

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GOLD TECHNICAL ANALYSISGold prices have plea insurgency during 1239.60 (trend line support-turned-resistance, 38.2% Fibonacci retracement), with a mangle above that reliable on a daily shutting basement exposing a 50% spin during 1250.38. Alternatively, a pierce behind next a 23.6% Fib during 1226.26 eyes a teenager draft focus spin during 1219.35, followed by a Jul 10 low during 1204.70.

Crude Oil Prices Down as OPEC Struggles to Offset US Supply Gain

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continue to strike opposite insurgency during 47.10, a 38.2% Fibonacci retracement. A daily tighten above that targets a 50% spin during 48.65. Alternatively, a spin next draft rhythm indicate supportat 45.32 exposes a May 5 lowat 43.79 anew.

Crude Oil Prices Down as OPEC Struggles to Offset US Supply Gain

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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