CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices[1] hold support despite sweeping risk aversion
- Monthly EIA report on supply trends, API inventory data due
- Gold prices[2] tethered as risk-off move brings conflicting forces
Crude oil prices didn’t find lasting traction as risk aversion roiled financial markets. The sentiment-linked WTI benchmark sank as US shares picked up on the negative lead from Europe but follow-through didn’t materialize, with prices swiftly rebounding to close the day little-changed.
Traders may have been leery of overextending on the downside following Friday’s brutal selloff until OPEC and its allies in a production cut scheme settle on a common message. Russia and Saudi Arabia have hinted at relaxing output curbs but other producers (like Ecuador) have voiced opposition to doing so.
Gold prices struggled to find direction as haven-seeking capital flows buoyed the US Dollar[3] and Treasury bonds in tandem, weighing on yields. That put the yellow metal’s appeal as an anti-fiat alternative and its role as benchmark non-interest-bearing asset in conflict.
API INVENTORY DATA, MONTHLY EIA REPORT IN FOCUS
Looking ahead, crude oil volatility may be reanimated as API inventory flow data comes across the wires. The outcome will be judged against expectations of a slight 500k barrel outflow projected to appear in official DOE statistics published Thursday.
A monthly report on supply trends form the EIA is also due. That may show that swelling US output is already poised to undermine OPEC-led supply cut efforts as they are. Layering that on top of any Saudi- and Russia-led production increase might be seen as justifying an even lower
