Oil Holds Firm, Gold Eyes FOMC Meet | investing.com – Investing.com

Oil Holds Firm, Gold Eyes FOMC Meet | investing.com – Investing.com

Oil prices were remarkably firm overnight and are signalling that a test of upside resistance levels could be ahead. Both and recorded substantial gains despite higher US yields, a firmer greenback, higher than expected US API Crude and OPEC+ production increases starting next week. OPEC+ cancelled a ministerial meeting this week, deeming it not necessary ahead of previously decided production increases, in a show of confidence in their forecasts.

Brent crude rose by 1.30% to USD66.60 a barrel, with WTI climbing 1.80% to USD63.10 a barrel. Both contracts have seen some modest profit-taking in Asia, Brent crude easing to USD66.35 and WTI to USD62.85 a barrel but have clung onto almost all of their overnight gains.

A benign FOMC and the expectations of impressive US data to come this week and its flow-on impact of US consumption appear to be trumping concerns over Covid-19 in India. US API Crude Inventories rose to 4.5 million barrels overnight, far higher than expected. The fact that the market ignored this entirely suggests that oil prices have seen their medium-term lows for now. A repeat with official US Crude Inventories this evening would almost certainly confirm this premise.