Crude Oil Prices May Extend Gains on Inventories Drawdown

Talking Points:

  • Crude oil prices soars as API information amplifies OPEC news-flow
  • Gold prices left range-bound notwithstanding hawkish Yellen comments
  • EIA oil inventories data, year-end flows in a spotlight forward

Crude oil posted a largest daily boost in 3 weeks after API register information amplified supportive OPEC news-flow. The news forked to a drawdown of 4.15 million barrels final week. The central EIA news set to cranky a wires in a entrance hours is approaching to uncover a some-more medium 2.43 million tub drawdown. An upside warn echoing a API comment might offer prices a serve upside nudge.

Meanwhile,a medium pullback pleasantness of Fed Chair Yellen unsuccessful to benefit adequate movement to lift gold prices out of a slight converging operation staked out after prices strike a ten-month low final week. A peace in title eventuality risk and thinning pre-holiday liquidity conditions might open a doorway for a improvement of “Trump trade” moves, hinting during a probability of a rebound driven by profit-taking.

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GOLD TECHNICAL ANALYSISGold prices continue to step H2O above a $1100/oz figure. From here, a mangle next a 38.2% Fibonacci enlargement during 1118.98 on a daily shutting basement targets a 50% spin during 1097.71. Alternatively, a spin behind above a 23.6% Fib during 1145.30 exposes a 14.6% enlargement during 1161.52.

Crude Oil Prices May Extend Gains on Inventories Drawdown

CRUDE OIL TECHNICAL ANALYSISCrude oil prices demeanour set to exam monthly insurgency above a $54/bbl figure. Breaching a 54.63-55.00 area (38.2% Fibonacci expansion, trend line) on a daily shutting basement exposes a 50% spin during 56.08. Alternatively, a annulment next a 23.6% Fib during 52.84 targets a 23.6% enlargement during 51.73.

Crude Oil Prices May Extend Gains on Inventories Drawdown

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

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