Crude prices have been on fire, rising for a sixth straight week as the demand outlook improves and over geopolitical fears could lead to severe production disruptions. The supply side continues to support a tight market as OPEC+ is expected to stick to their plan of increasing output by 400,000 bpd in March, even though their compliance last month only hit 60% of plan.
Now that $90 oil is here, it won’t take much to get prices to $100 and that will just intensify the global energy crisis. News of an Omicron subvariant have not rattled markets as boosters appear to still be getting the job done.
WTI crude settled near session lows after the weekly Baker Hughes rig count data rose by 4 rigs to a total of 495.
Gold
Gold’s pain may last a little longer until the Fed’s aggressive pivot with tackling inflation is fully priced in. The $1,800 level was a key support level for gold, so momentum selling has the potential to make this an interesting trade. If it gets ugly quick and $1760 breaks, gold may not see much support until $1720.
Bitcoin
Bitcoin is embracing Wall Street’s risk-on mood as it continues to form a base. The all-clear signal has not been given, but crypto traders are embracing the relative calm that is being seen with the top cryptos. Bitcoin may form a broadening formation between $34,000 and $40,000 next week.