Calls for $100 oil premature
Oil prices are slipping again on Tuesday after paring losses over the last couple of sessions. It would appear crude prices have now settled back into their pre-OPEC+ intervention trading ranges, with Brent between $78-$88 and WTI $73-$83.
The move lower today could even be another push to close the OPEC+ gap from a few weeks ago after falling just short late last week. Calls for $100 in the aftermath of the OPEC+ decision may have been premature, although, amid such an uncertain outlook, it is still possible if a soft landing is achieved. The second half of the year is poised to be more challenging for the global economy, though, as conditions tighten further and prior tightening takes hold.
Consolidation in gold ahead of US economic data
Gold is relatively unchanged today, continuing the consolidation we’ve been seeing over the last week or so. Higher rate expectations have pushed it back from near-record highs but traders appear unconvinced by those expectations and reluctant to give up on all-time highs.
The yellow metal has remained choppy around $2,000, a big psychological level, albeit one that, on this occasion, hasn’t been the catalyst for a significant shift in either direction. Instead, traders appear willing to wait for further US data – of which there’s plenty to come this week – before making their mind up. In the interim, consolidation may continue.