Oil turns lower on recession risk
Oil has turned lower since the open, in line with the moves we’ve seen in equity markets. It would appear the economic reality isn’t being lost everywhere and the big downside risk for oil in recent weeks – recession – is weighing on the price once more. Still, while WTI has slipped back below USD 97, Brent continues to hover above USD 100 so the tightness in the market continues to support it.
Interestingly, a US administration official suggested today that they are optimistic that some positive news may come from the next OPEC meeting. Whether this is just an inkling or a view based on assurances made to President Biden isn’t clear but it certainly makes the gathering next week all the more interesting.
Buoyed by the Fed and US data
Gold is having a lovely time in light of the Fed meeting and the US GDP release. What could be better for the yellow metal than slower tightening, markets pricing in a reversal early next year and a technical recession? It’s been a torrid time for gold but moments like these call for a safe haven inflation hedge and it is seemingly stepping up.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/
This article is for general information 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 affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.
His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.
Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
