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Crude Ends Volatile Session Lower, Gold Slumps Back From All-Time High

COMMODITIES
  • Crude markets are finishing the US session near the day’s lows after a volatile session. A surge in the US Dollar and stronger than expected non-OPEC supplies have been put pressure on prices and offset planned OPEC production cuts.
  • OPEC+ cuts can “absolutely” go beyond the first quarter of 2024 according to Saudi Energy Minister Prince Abdulaziz bin Salman speaking with Bloomberg. He would have preferred to see a reduction in output but couldn’t convince his Russian counterpart.
  • Speaking to Bloomberg TV on refilling the US SPR, David Turk, US Department of Energy Deputy Secretary said, “We will buy as much as we possibly can, but there are some physical constrains given the way the caverns are set up.”
  • WTI is -1.2% at $73.19 but support remains at the bear trigger of $72.37 (Nov 16 low).
  • Brent is -0.9% at $78.18, with support seen at the bear trigger of $76.71 (Nov 16 low).
  • Gold is -2.0% at $2030.95 having pulled back sharply from an overnight all-time high of $2135.4, with a second wind to earlier declines off those highs coming with USD strength alongside higher US Treasury yields. The overnight high opened $2135.4 (Fibo projection of Oct -Nov price action) whilst it’s already breached support at $2052.03 (Nov 29 high) to open $2001.5 (20-day EMA).

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