Tue. Oct 26th, 2021

Tight oil markets drive up crude oil prices

Crude oil prices are rising as traders continue to believe that the short-term concern of the delta variant will not change this market away from a deficit soon. While German Chancellor Merkel expresses concerns about the European-extended Delta variant, improving vaccination rates means hospitalization rates do not threaten her healthcare system. The oil market will remain tight and prices will accelerate once the new trend or restrictions in Southeast Asia, Australia and Europe begin to loosen.

According to Baker Hughes, American shale drilling appears to be on the verge of declining for the rest of the year and this should maintain OPEC + content as production gradually increases.

WTI crude appears to be consolidating between the $ 70 and $ 75 level in the short term.

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Gold prices are slightly higher as Treasury yields fall after a reading of higher-than-expected unemployment claims. The weak launch did not discourage investors, as seasonal adjustment factors may have played into the big failure. Many attribute the soft reading to the adjustments of the auto industry and, as some states have again restricted COVID restrictions.

Gold continues to stagnate at around US $ 1,800 and is likely to remain so until after next week’s FOMC meeting. The debate over intensity reduction will intensify and enough clues will be given to let this market know if the Jackson Hole Symposium is at stake in August. Economists ’expectations are everywhere when the Fed will make the announcement slower and what the pace will be.

The recent softness in some of the labor market readings and mixed signals about price pressures could help the Fed err on the side of prudence and point to this meeting. Any Fed ingenuity will be the fuel that will help raise gold and potentially surpass the $ 1,850 level.

This article is for informational purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its subsidiaries, subsidiaries, directors or administrators. Leveraged trading is high risk and not suitable for everyone. You could lose all your funds.

Ed Moya

With more than 20 years of business experience, Ed Moya is a senior market analyst at OANDA, which produces up-to-date inter-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. Its specialization is in a wide range of asset classes, including currencies, commodities, fixed income, stocks and cryptocurrencies. Throughout his career, Ed has worked with some of Wall Street’s leading forex brokers, research teams, and news departments, including global forex trading, currency exchange solutions, and Trading Advantage. He recently worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most recognized news networks, including Reuters, Bloomberg and the Associated Press, and he is regularly cited in major publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed has a degree in Economics from Rutgers University.

Ed Moya

Ed Moya




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