Oil On Losing Streak, But Gold Hangs On – Investing.com

Oil On Losing Streak, But Gold Hangs On – Investing.com

are plunging closer to bear market territory on fears global crude demand forecasts for the remainder of the year will see drastic reductions. Visions of the U.S. economy being fully reopened and with kids attending school in person might have several disruptions. Too many vaccinated individuals are coming down with COVID and while hospitalizations seem unlikely, a complete return to work for the majority of the population seems less likely as many families have unvaccinated children.

A strong is also weighing on crude prices but that might not last much longer given how strong Treasuries are advancing. Wall Street is interpreting the Fed’s minutes as a pivot towards hawkishness, but that was already priced in and the dollar will likely see limited upside from here.

WTI crude’s six-day losing streak seems a bit overdone but for it to stop, it might need a sign from OPEC+ that they might hold off on plans to ramp up output. The oil market is still in deficit and a breach below the US$60 level will likely attract many long-term bullish bets. The bottom could be nearing here for crude, but energy traders will need to see some positive headlines regarding global economic growth.