Crude Oil Prices Eye China Demand Outlook, EIA Inventory Data

Talking Points:

  • Crude oil prices miscarry from 3-week low on API register data
  • Weekly EIA report, CNPC Chinese direct opinion now in focus
  • Gold prices competence tumble serve on upbeat FOMC assembly minutes

Crude oil prices posted a medium miscarry carrying slipped to a three-week low after API pronounced US inventories strew 9.2 million barrels final week, a distant incomparable dump than a 3 million tub pull approaching to be reported in central EIA total today. If they come closer to API projections, a serve miscarry competence be in a cards.

China National Petroleum Corp is also scheduled to recover a opinion for internal and tellurian appetite direct during 6 GMT. A high drop in enlightening activity weighed on prices amid worries of fading uptake from a world’s largest wanton consumer. More justification on a same competence infer serve negative.

A drop in bullion prices amid easing geopolitical instability fears was compounded as upbeat US sell sales total bolstered Fed seductiveness rate travel prospects, as expected. That gathering a US Dollar aloft alongside Treasury bond yields, undermining support for non-interest-bearing and anti-fiat assets.

Minutes from July’s FOMC meeting are now in focus. Rhetoric suggesting process makers remain assured in their standing projection – final updated in Jun – calling for 3 seductiveness rate hikes in 2017 (of that dual are already in a story books) competence retaliate a yellow steel further.

Retail traders design bullion to rise. Find out here what that hints about a tangible cost trend!

GOLD TECHNICAL ANALYSISGold prices declined as expected after producing a bearish Evening Star candlestick pattern. From here, a daily tighten next a 23.6% Fibonacci enlargement during 1270.58 exposes rising trend line support during 1264.66, followed by a 38.2% turn during 1257.29. Alternatively, a annulment behind above a 14.6% Fib during 1278.78 opens a doorway for a retest of double tip insurgency during 1295.46.

Crude Oil Prices Eye China Demand Outlook, EIA Inventory Data

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices paused to digest waste though conspicuously unsuccessful to mangle behind above rising trend line support set from June’s pitch low, bolstering a box for a bearish annulment in progress. A daily tighten next a 23.6% Fibonacci enlargement during 47.30 exposes a 38.2% turn during 45.38. Alternatively, an allege behind above a trend line – now during 47.94 – targets a 14.6% Fib during 48.48.

Crude Oil Prices Eye China Demand Outlook, EIA Inventory Data

Chart combined regulating TradingView

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

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