Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

OPEC+ Delivers; Gold Pares This Week’s Gains

By MarketPulse (Ed Moya)CommoditiesOct 06, 2022 01:12AM ET
www.investing.com/analysis/opec-delivers-gold-pares-this-weeks-gains-200630714
OPEC+ Delivers; Gold Pares This Week’s Gains
By MarketPulse (Ed Moya)   |  Oct 06, 2022 01:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
XAU/USD
-0.27%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-2.35%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

OPEC+ agrees to cut production

OPEC+ agreed to cut their production target by 2 million barrels a day. OPEC+ is keeping the oil market tight with the biggest output cut since 2020. ​ The production cut was driven by the uncertainty that surrounds the global economic and oil market outlooks.

The OPEC+ target is now 10.5 million BPD, which according to the Saudis, is a real cut between 1 to 1.1 million BPD. ​ The next ministerial meeting will be on Dec. 4. ​ The plan is now for them to have ministerial meetings every six months, and the monthly JMMC meetings will now happen every two months.

The EIA crude oil inventories showed crude, gasoline, and distillate inventories continue to fall. ​ This report was mostly bullish, given a headline draw, rebound in gasoline demand, steady production, and steady exports above 4 million barrels a day.

Oil should remain supported here following the OPEC+ decision and the EIA report, but the upside will be capped well in advance of the $ 100-a-barrel level. ​

After the OPEC+ meeting, Russia’s Novak said it could cut output if an oil price cap is implemented. Novak is signaling that Russia is not desperate for revenues, and if this cap moves forward, we could see oil prices extend gains. ​ ​

Gold

Gold prices edged lower after the bond market said not so fast with the collapse of global bond rates. ​ A strong private payrolls report reminded investors that there is still strength in the labor market that could allow the Fed to remain aggressive beyond the next two FOMC meetings.

Gold needs to see a sharper slowdown in the US and cooler prices for a bullish breakout to form. Gold seems poised to consolidate between $1680 and $1740 until we get the nonfarm payrolls report and the latest inflation readings.

Original Post

OPEC+ Delivers; Gold Pares This Week’s Gains
 

Related Articles

Michael Ashton
Oil Be Home for Christmas By Michael Ashton - Nov 24, 2022

As a general rule, don’t trade on pre-holiday thin-liquidity sessions. There can be amazing-seeming opportunities, but price can still get shoved in your face by whoever it...

OPEC+ Delivers; Gold Pares This Week’s Gains

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email