Crude Oil Prices Seesaw on Hopes for Larger OPEC-Led Output Cuts

Talking Points:

  • Crude oil prices whipsaw as Libya restarts Shahara field, OPEC/NOPEC meet
  • Gold prices shrug off tame Fed commentary, looking forward to US acceleration data
  • Are commodity cost trends relating a forecasts so distant in Q3? Find out here

Crude oil prices seesawed though unsuccessful to find durability direction. The WTI benchmark fell as Libya restarted a Shahara oil margin after it was quickly tighten down by protestors. The nation is free from a OPEC-led prolongation cut intrigue and a flourishing outlay has bedeviled participants’ efforts during rebalancing a market.

Prices quickly recovered however as all eyes returned to Abu Dhabi, where a assembly of a conglomeration and a allies is eyed for signs of agreement on incomparable outlay reduction. News-flow from a entertainment as good as a weekly set of API register upsurge total and a short-term opinion news from a EIA are now in focus.

Gold prices noted time in a slight converging range, digesting losses postulated after Friday’s upbeat US jobs report. Traders were unexcited by broadly status-quo comments from St Louis and Minneapolis Fed presidents Jim Bullard and Neel Kashkari.

Both policymakers tumble on a dovish side of a FOMC spectrum and delivered accordingly but sounding any some-more forceful than before. A peace in top-tier news-flow might see a delay continue in a nearby tenure as investors prop for Friday’s US CPI report.

What do sell traders’ buy/sell decisions contend about bullion cost trends? Find out here!

GOLD TECHNICAL ANALYSISGold prices paused to digest waste above support noted by a 23.6% Fibonacci enlargement during 1252.62. A daily tighten next this separator opens a doorway for a plea of a 38.2% spin during 1239.33. Alternatively, a annulment behind above draft rhythm indicate insurgency during 1260.85 targets a Aug 1 high during 1274.11 anew.

Crude Oil Prices Seesaw on Hopes for Larger OPEC-Led Output Cuts

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are still sealed in a now-familiar operation next insurgency during 50.19, a 61.8% Fibonacci retracement. A pull above this separator reliable on a daily shutting basement exposes a 76.4% spin during 52.11. Alternatively, a spin next a 50% Fib during 48.65 paves a approach for a retest of a 47.10-29 area (38.2% Fib, Jul 4 high, trend line).

Crude Oil Prices Seesaw on Hopes for Larger OPEC-Led Output Cuts

Chart combined regulating TradingView

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

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