Crude Oil Prices Struggle during 7-Week Highs, API Data Ahead

Talking Points:

  • Crude oil prices struggling after recuperating to a 7-week high
  • Gold prices mangle 2-month uptrend before Fed rate decision
  • API wanton oil inventories, US import prices information due ahead

Crude oil prices continued to symbol time next a $51/barrel figure, left adrift by an EIA Drilling Productivity news that downgraded shale outlay expectations for Sep though called for record-high prolongation in a following month. Reports of a dump in Saudi exports in Jul and a intrusion of Nigerian wanton deliveries were serve taken in stride.

The spotlight now turns to a US register upsurge information from API. For context, a central set of equivalent DOE statistics set to cranky a wires on a following day is approaching to uncover stockpiles combined 2.68 million barrels final week. Prices competence get a boost if a progressing news shows a smaller build. A incomparable one competence not be as impactful as traders continue to bonus hurricane-related refinery disruptions.

Gold prices did not wait for a FOMC financial process announcement for instruction cues (as was suspected), relocating neatly reduce opposite a backdrop of firming Treasury bond yields that undermined a interest of non-interest-bearing assets. The pierce followed serve steepening in a priced-in Fed rate travel outlook, with a luck of a third rate travel before year-end rising to a two-month high of 50.6 percent.

Sellers competence keep a tip palm as information shows US import cost inflation accelerating for a initial time in 6 months to strike an on-year rate of 2.2 percent in August, a tip given May. However, a box for durability follow-through still seems to be rather groundless until Fed Chair Janet Yellen and association have had their contend on Wednesday.

What are a fundamentals pushing long-term wanton oil cost trends? Find out here!

GOLD TECHNICAL ANALYSISGold prices accelerated downward, violation trend line support set from Jul lows. Sellers now aim to plea a 1295.46-99.25 area (38.2% Fibonacci retracement, double top), with a daily tighten next that exposing a 50% spin during 1281.26. Alternatively, a annulment behind above a 23.6% Fib during 1321.51 targets a 14.6% retracement during 1335.24 anew.

Crude Oil Prices Struggle during 7-Week Highs, API Data Ahead

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continue to symbol time during insurgency noted by a Aug 1 high during 50.40.A daily tighten above that opens a doorway for a exam of a May 25 tip during 51.97. Alternatively, a spin behind next trend line resistance-turned-support during 49.05 exposes a Sep 11 low during 47.03.

Crude Oil Prices Struggle during 7-Week Highs, API Data Ahead

Chart combined regulating TradingView

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

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