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A Quieter Day For Oil And Gold

COMMODITIES
  • A quieter day for crude oil, edging lower to unchanged whilst US gasoline touches new record highs.
  • The latest GS forecast puts Brent crude averaging $140/bbl in 3Q22 before $125/bbl in 2023, suggesting further demand destruction is required next year for global inventories to normalise by late 2023.
  • WTI is -0.2% at $118.21, hovering just under resistance at $120.99 (Jun 6 high) after which it could open round number resistance at $122. The most active strikes in the Jul’22 contract have clearly been $125/bbl calls.
  • Brent is +0.1% at $119.61, again below resistance at $121.95 (Jun 6 high).
  • Gold meanwhile firms +0.5% to $1850.82 as the UST yields and the US dollar pull back. Recent gains are considered corrective whilst the primary trend direction is down, with support eyed at $1828.6 (Jun 1 low).
  • US natural gas meanwhile keeps just off recent highs, -0.1% at $9.31/mmbtu as hot temperatures boost domestic power generation demand with Texas expected to see all-time electricity demand highs this week.

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