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Crude Oil Sees Second Day Of Solid Gains Ahead Of OPEC+, Gold Slides Post Payrolls

COMMODITIES
  • Crude oil have steadily ground out decent-sized gains today, a second day of gains to mostly unwind what at times this week were heavy declines.
  • Gains are attributed to Congress passing debt ceiling legislation, the potential for new measures to support the economy in China and with uncertainty over the outcome of the OPEC+ meeting this weekend.
  • Bloomberg reports: OPEC+ gathered in Vienna to decide whether to give their existing production cuts more time to take effect, or take further preemptive action to boost prices. Ministers gave little indication of which path they would choose as they arrived in the Austrian capital, and market watchers weren’t ruling anything out.
  • WTI is +2.3% at $71.71, moving closer to resistance at $73.68 (50-day EMA).
  • Brent is +2.5% at $76.11 having cleared resistance at $75.92 (20-day EMA) to open $77.58 (50-day EMA).
  • Gold is -1.4% at $1950.92 on resurgent dollar strength and higher yields on the nuanced payrolls report. The yellow metal more than unwinds yesterday’s large gains and closes the week only slightly higher, but doesn’t yet test support at $1932.2 (May 31 low).
  • Weekly moves: WTI -0.2%, Brent -1.1%, Gold +0.2%, US nat gas -5.5%, EU NNT nat gas -3.4%

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