MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Late Dollar Headwind Eats Into Prior Crude Gains

COMMODITIES
  • WTI front month futures are ending the session with a only mild gains having given up some earlier strength in a move that started before but had additional impetus from Treasury yields and the dollar surging on first a poor 30Y auction and then Fed Chair Powell’s remarks.
  • Crude has regained ground after steep losses yesterday amid an improved risk sentiment and slight pull back from the downside pressure the bearish demand outlook is having on prices.
  • The WTI prompt month time-spread has flattened and is oscillating between a shallow contango and shallow backwardation. Weak prompt demand, record US output and expectations of building Cushing stocks are weighing on the prompt and pushing the market into contango.
  • Saudi Energy Minister Prince Abdulaziz bin Salman says the recent oil decline is due to speculators and that oil demand is healthy according to Bloomberg.
  • WTI is +0.2% at $75.45, close to support at $74.91 (Nov 8 low).
  • Brent is +0.3% at $79.77, off support at $79.20 (Nov 8 low).
  • Gold is +0.5% at $1959.7 giving back only a small part of earlier gains considering the magnitude of the USD upswing. It remains a long way from the bull trigger at $2009.4 (Oct 27 high) after recent heavy declines.
  • JPMorgan earlier today: "From a peak of around $175/oz at the end of October, gold's geopolitical risk premium on top of what can be explained by underlying moves in the USD and US 10-year real yields has more than halved and sits around $65/oz."
  • "We think current US 10-year real yield levels imply a 'fair' gold price level of around ~$1,880/oz, pretty much aligned with what monthly changes in the DXY and real yields also imply." [...] "In the very near-term we expect gold prices could remain under pressure as some of the remaining risk premium continues to erode. Though, we largely expect prices to once again restabilize in the low $1,900s in the coming months."
Energy BulletsCommoditiesJPMorgan Market News
Energy BulletsCommoditiesJPMorgan Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.