Oil Prices Ease, Gold Remains Steady – Investing.com

Oil Prices Ease, Gold Remains Steady – Investing.com

OPEC+ nerves weigh on oil

prices continued to fade yesterday, as markets that were already heavily long weighed up the implications of the apparent higher baseline production levels for the UAE. More importantly to markets, though, is whether it will lead to a flurry of demands from other members for similar concessions, leading to the spectre of much higher volumes of oil hitting global markets as growth start to slow in parts of the world. OPEC’s monthly report yesterday lifted its consumption forecast to above pandemic levels for 2022, but oil prices refused to halt their downward move.

fell 1.70% to USD 73.25 a barrel, which WTI retreated by 2.0% to USD 71.45 a barrel. Both are unchanged in Asia, with regional markets content to remain on the sidelines as the week closes out. The threat of weaker OPEC+ cohesion and higher than anticipated production will cap oil price gains for now. Brent crude has support at USD 72.00 a barrel, and failure could see a speculative capitulation trade occur, although I expect its duration to be short, if brutal. WTI’s line in the sand remains at USD 70.00 a barrel, and I expect some similarly ugly stop-loss selling to