Crude Oil Prices Look to API Inventory Data to Break Deadlock

Talking Points:

  • Crude oil prices pale as US Dollar, OPEC contest for influence
  • API inventories information competence uncover pitch producers to remove supply cut
  • Gold prices continue to find support in “Trump trade” unwinding

Crude oil are imprinting time in informed territory, with traders clearly unexcited to take organisation directional bets amid a yank of fight between understanding US Dollar debility and doubt about a durability change of OPEC’s supply cut deal. Weekly register upsurge information from API competence get assistance mangle a deadlock in a entrance hours.

Baker Hughes reported that a series of handling US oil rigs rose to a tip in 14 months final week. If this is followed by a pickup in stockpiles, that competence accelerate a recently rising clarity that OPEC’s price-boosting efforts competence be self-defeating as pitch producers ramp adult production. Needless to say, a wanton oil competence come underneath vigour in this scenario.

Gold prices continue to find support in a unwinding of a supposed “Trump trade”. Lingering mercantile process doubt is casting doubt on before bets that a new US administration will stoke acceleration and wave a steeper Fed rate travel cycle. A comparatively still mercantile information calendar in a hours forward doesn’t seem to offer suggestive roadblocks to this dynamic, hinting a yellow steel competence sojourn supported.

Will bullion and wanton oil prices continue aloft in a initial quarter? See a forecasts to find out!

GOLD TECHNICAL ANALYSISGold prices seem to have overturned a bearish Dark Cloud Cover candlestick settlement put in final week. Still, disastrous RSI dissimilarity warns of fading upside movement and competence be hinting during an on-coming downturn. A daily tighten successive 1199.80 exposes a 23.6% Fibonacci retracement during 1182.36. Alternatively, a crack above a 38.2% turn during 1219.20 sees a successive upside separator in a 1248.98-50.65 area (50% level, Jun 24 low).

Crude Oil Prices Look to API Inventory Data to Break Deadlock

CRUDE OIL TECHNICAL ANALYSISCrude oil cost positioning has been little-changed in new days, with a would-be Head and Shoulders tip still in a works. Breaking behind successive 52.44 exposes a 50.25-69 area (38.2% Fibonacci retracement, Jan 10 low), with a successive daily tighten underneath that confirming a bearish draft pattern. Alternatively, a pull above a 23.6% Fib enlargement during 53.75 opens a doorway for a exam of a 55.21-65 section (January 3 high, 38.2% expansion).

Crude Oil Prices Look to API Inventory Data to Break Deadlock

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

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