Crude oil prices remain volatile as energy traders digest another round of economic data that supports the idea that the Fed could still deliver a soft landing and as stockpiles remain near 18-year lows. Earlier, crude was lower as Beijing struggled with surging COVID cases. Also keeping the oil market on edge is the proposed price cap on Russian crude. Some analysts expect a modest drop in Russian production, but we won’t find that out until next month.
Oil surged after reports that the Druzhba pipeline is halting oil deliveries from Russia. The oil price rally extended after reports that two Russian missiles crossed into Poland and killed two people.
Gold
Gold prices are steadying as Wall Street appears set on waiting to see if inflation continues to come down. Gold’s benefited from a few soft inflation reports, but now it seems it will need to wait a while longer to see if that trend continues.
Gold has major resistance at the $1800 level, which might prove difficult to reach unless we see a major move lower with the US dollar.