Oil prices hit 10-month high on supply concerns
Oil prices are rising today due to concerns about a potential supply shortage. Saudi Arabia and Russia announced they would continue reducing their oil production until the end of the year.
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Oil prices are rising today due to concerns about a potential supply shortage. Saudi Arabia and Russia announced they would continue reducing their oil production until the end of the year.
Oil prices are running strong today. Brent crude has topped $93 per barrel for the first time this year. WTI touched $90 per barrel, which is a 10-month high. Anticipation of a more constrained supply for the remainder of 2023 eclipsed worries about sluggish economic expansion and the increasing stockpiles in the United States.
Both UKOil and USOil have charted a higher trough followed by a higher peak, putting the CFDs into uptrend. UKOil is now trading over $90 a barrel and USOil at $87.20 per barrel. Moreover, their stochastics are also trading in their respective upper quintiles. This suggests that there is a strong underlying momentum that is supporting oil prices.
The commodity reached new year highs after forming a technical golden cross, also helped by soft US jobs data that strengthen the case for a Fed pause and improved sentiment around China’s property market
Country Garden’s default warning aggravated concerns over China’s property sector, but authorities announced action to lower mortgages, helping copper prices
UKOil has pushed into its bullish channel, between the upper blue and red bands. Its daily RSI is also above 50, which is the bullish side of the indicator. If these positions are held, there will be an underlying support for UKOil.
The commodity continues the pullback from its 2023 highs on China and Fed woes, but holds crucial technical levels
Gold has a robust inverse relationship to the 10-year real yield. The current correlation coefficient on the daily timeframe is -90%. Yesterday, the real yield declined by 6.57%, which saw the yellow metal respond and appreciate on the day.
The commodity heads towards its first losing week in around two months, weighed by fears over the Fed’s policy outlook and China’s economy
Some weakness is evident in the weekly gold chart. A lower peak has charted. If a lower trough follows, the yellow metal will be in a defined downtrend on a weekly basis. The RSI has dipped below 50, which does suggest that there is an underlying bearish momentum. The longer it maintains under 50, the more pressure will be applied to the gold price.
China’s consumer inflation fell to negative territory as today’s data showed, but Copper rises on hopes for further stimulus by authorities
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