Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

WTI Breaks Below $90, Gold Shining Brightly

By Ed MoyaCommoditiesAug 04, 2022 11:56AM ET
www.investing.com/analysis/wti-breaks-below-90-gold-shining-brightly-200628084
WTI Breaks Below $90, Gold Shining Brightly
By Ed Moya   |  Aug 04, 2022 11:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The oil market is a mixed bag, as demand destruction is met with limited spare capacity. ​Ongoing weakness should be unlikely since the oil market remains tight, but the break of the key technical $90 level could unleash some momentum selling. ​ WTI crude should have seen massive support at the $90-a-barrel level, but an intensifying global economic slowdown is changing that oil market in tight trade. WTI crude should see some support at the $88.75 if this breach of the $90 level holds.

Weakening economic data from the UK and Germany kept oil heavy early, but buyers clearly emerged. Oil price weakness should be limited from here, as energy traders know that China’s demand for crude could bounce back any time soon and that the SPR release will end in the fall. If the energy markets remain in doom-and-gloom demand mode, oil could fall another $5, but that should not be the base case. ​

Earlier, the Saudis raised September prices to record levels for Asia. The increase of Arab light crude was 50 cents, which was less than the $1.50 increase some energy analysts were expecting. ​The Saudis are keeping the oil market tight and that should eventually provide some support for crude prices. ​ ​

The resumption of Iran nuclear deal talks will closely be watched to see if negotiators can break the impasse. Energy traders have watched this movie before, and no one will start pricing extra barrels of Iranian crude to hit the market before the end of the year.

Gold Moves Higher

Gold continues to rally as geopolitical tensions won’t be going away any time soon and as central bankers worldwide brace for recessions. ​The Bank of England had a rather gloomy outlook and the Czech central bank (CNB) surprised markets by halting its rate hiking cycle.

Gold is rallying as Wall Street becomes fixated with a global economic slowdown that will get much worse by year-end.

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.

WTI Breaks Below $90, Gold Shining Brightly
 

Related Articles

Ed Moya
Oil Stumbles, Gold Edges Lower By Ed Moya - Aug 17, 2022

After 18 months of negotiations, progress has been made in reviving the Iran nuclear deal. ​ We’ve been here before and have seen talks fall apart. ​ What is a little...

WTI Breaks Below $90, Gold Shining Brightly

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