Crude Oil Prices May Fall as OPEC Data Shows Glut Persisting

Talking Points:

  • Crude oil prices corner adult on EIA information though informed operation still remains
  • Gold prices might shrug off Dudley comments, concentration on US PPI figures
  • Are line relating a forecasts so distant in Q3? Find out here

Crude oil prices drifted to a tip of August’s slight operation as EIA register data showed US stockpiles strew 6.45 million barrels final week, violence forecasts job for a 2.2 million draw. The outcome echoed an API guess published on a before day, that might have attacked it of larger market-moving potential.

The OPEC Monthly Oil Report is in concentration from here. Data display a conglomeration struggling to revoke outlay pleasantness of member states free from concurrent prolongation cuts – like Libya – might stoke marketplace doubt about a effort’s potential and import on prices.

Gold prices was one of a few resources to say anti-risk movement triggered as a war of difference between a US and North Korea escalated yesterday. Treasury holds and a Yen retraced gains and a SP 500 erased all of a intraday waste by session’s close. The steel set a two-month high in a meantime.

The spotlight now turns to US PPI statistics. The indiscriminate acceleration rate is approaching to parasite adult to 2.1 percent in July, revisiting a three-year high set in May. A better-than-expected imitation echoing new alleviation in US news-flow might fuel bets on a identical outcome when CPI information prints on Friday, promulgation bullion lower.

New York Fed President Bill Dudley is also scheduled to pronounce to a press. The successful policymaker is mostly seen as deputy of a accord on a rate-setting FOMC committee. He might strike a carefully hawkish tinge though markets seem to be some-more manageable to information than Fed-speak lately.

Retail traders design bullion to arise further. Find out here what this hints about a tangible cost trend!

GOLD TECHNICAL ANALYSISGold prices surged, posting a largest daily benefit in 3 months and holding out August’s before pitch high. From here, a daily tighten above a 38.2% Fibonacci enlargement during 1277.59 exposes a 50% turn during 1285.74. Alternatively, a annulment behind next a 23.6% Fib during 1267.51 opens a doorway for a retest of a draft rhythm indicate during 1260.85.

Crude Oil Prices May Fall as OPEC Data Shows Glut Persisting

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices sojourn range-bound next a 61.8% Fibonacci retracementat 50.19. A daily tighten above this separator exposes a 76.4% turn during 52.11. Alternatively, a annulment next a 50% Fibat 48.65 targets a 47.10-29 area (38.2% Fib, Jul 4 high, trend line).

Crude Oil Prices May Fall as OPEC Data Shows Glut Persisting

Chart combined regulating TradingView

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

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