Crude Oil Prices May Extend Worst Losing Streak in 20 Months

CRUDE OIL GOLD TALKING POINTS:

  • Crude oil prices suffer the longest losing streak in 20 months
  • Gold prices decline as bond yields tick higher alongside stocks
  • EIA inventory data due, SP 500 futures hint at risk-on lean

Crude oil prices slumped, suffering the seven consecutive day in the red to make for the longest losing streak since April 2017. That followed an EIA report predicting the biggest increase in US oil production on record in 2018. API data showing inventories added a hefty 7.83 million barrels last week reinforced the move. Gold prices edged lower as yields rose in risk-on trade, sapping the appeal of non-interest-bearing assets.

CRUDE OIL EYES INVENTORY DATA, GOLD MAY FALL AS YIELDS RISE

Looking ahead, the spotlight turns to official DOE inventories data. Forecasts envision an increase of 1.63 million barrels, with an outcome closer to the API projection threatening to compound downside pressure. Gold may continue to suffer in the meanwhile as SP 500 futures point to another risk-on day on the sentiment front, which may keep bond yields on the upswing.

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Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2018/11/07/Crude-Oil-Prices-May-Extend-Worst-Losing-Streak-in-20-Months.html