Rising inventory puts pressure on oil prices
Elevated oil inventories will continue to be a dead weight on prices over the short-term dissuading traders from building aggressive long positions ahead of the inventory reports – Oil Price Market Today: Elevated oil inventories will continue to be a dead weight.
Yet oil still rallies on any stimulus news suggesting that a Joe Biden election could prove a short-term bullish catalyst for oil as will be the expected US dollar depreciation.
With coronavirus cases accelerating in many countries, the OPEC cartel faces a dilemma next policy meeting on Nov. 30-Dec. Undoubtedly, OPEC will be contemplating the need to extend the current quotas into early 2021 rather than follow the scheduled ramp down of curtailments – this would help in normalizing global inventories.
Gold snaps winning streak
Markets cheered the tech rally as gold snapped its winning streak. Still, whether it’s a hedge against the ultra-loose monetary policy or a safe-haven asset in a time of uncertainty, look to accumulate on dips towards 1900.
With the Democrats polling strongly into the US election should be optimistic for gold as a bigger fiscal stimulus package could become more likely.
Oil Price Market Today: Elevated oil inventories will continue to be a dead weight.