Crude Oil Prices Look to World Petroleum Congress for a Lifeline

Talking Points:

  • Crude oil prices looking to World Petroleum Congress for a lifeline
  • Gold prices might tumble serve Treasury bond yields arise in risk-on trade
  • What will expostulate Q3 wanton oil and bullion trends? See our forecasts here

Crude oil continued to penetrate notwithstanding a larger-than-expected weekly US register drawdown as outlay continued to transcend outflows. The EIA reported that US prolongation rose to 9.34 million barrels per day final week, imprinting a biggest boost given January.

From here, a spotlight turns to a World Petroleum Congress removing underway in Istanbul, Turkey. Sideline comments from a challenging roundup of attention bigwigs might infer market-moving if OPEC officials and their allies sound off on deeper outlay cut possibilities.

Gold prices plunged as a US Dollar rose following a recover of better-than-expected US labor-market data. The total lent faith to a Fed’s hawkish posture, undermining support for anti-fiat and non-interest-bearing resources including a yellow metal.

Looking ahead, a peace in top-tier eventuality risk might put view trends during a forefront. SP 500 futures are indicating higher, hinting that a upbeat mood on Asian bourses is aiming to lift onward. That might poke bond yields higher, pulling bullion reduce still.

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GOLD TECHNICAL ANALYSISGold prices pennyless next a May 9 lowat 1214.40, paving a approach for a plea of a 1195.13-99.67 area (March 10 low, 38.2% Fibonacci expansion). A mangle of this separator reliable on a daily shutting basement exposes a 50% turn during 1169.89. Alternatively, a pierce behind above 1214.14 – now recast as insurgency – targets a 23.6% turn during 1236.51.

Crude Oil Prices Look to World Petroleum Congress for a Lifeline

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices fell for a third uninterrupted day, with sellers now contrast support in a 43.51-79 area (38.2% Fibonacciexpansion, May 5 low). A daily tighten next that opens a doorway for a retest of a 42.08-35 segment (June 21 low, 50% Fib). Alternatively, a pierce above a 44.96-45.32 section (former support, 23.6% expansion) targets insurgency in a 47.03-12 range.

Crude Oil Prices Look to World Petroleum Congress for a Lifeline

Chart combined regulating TradingView

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

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