Oil Slips Below $90 As Recession Fears Mount
Oil prices are marginally higher on Friday after spending most of the week on the decline. It hasn’t been the most bullish week of headlines for crude, whether that be all of the recession chat (most notably from the UK), the new OPEC+ deal or the EIA inventory build. The headlines have all been negative, and so the price has continued to fall.
WTI has broken below $90 to trade back at levels seen before the Russian invasion of Ukraine. Everyone is taking the threat of recession far more seriously as we’re still seeing a very tight market and producers with no capacity to change that, barring a couple.
Gold Eyes $1,800 Ahead Of The Jobs Report
It’s been another very good week for gold, despite Fed policymakers coming out to try and spoil the party. It seems traders are not particularly interested in being told that rates won’t start falling towards the middle of next year or could still rise by 75 basis points in September despite the shift to data dependency. I mean, considering who’s been right this past 12 months, I can hardly blame them. But gold has certainly benefited, and the next challenge is $1,780-1,800, which is putting up quite the fight as nonfarm payrolls loom.