Crude Oil Prices May Rise with Stocks on US, China Trade Deal Hopes

CRUDE OIL GOLD TALKING POINTS:

  • Crude oil prices sink with stocks amid broad-based risk aversion
  • Gold prices fall as haven-seeking capital flows buoy the US Dollar
  • Commodities may rise with stocks on US, China trade dealhopes

Crude oil prices plunged alongside stocks as risk aversion swept financial markets. Gold prices likewise tumbled as the rout stoked haven-seeking demand for the US Dollar, pushing the benchmark currency to a two-week high and sapping the appeal of anti-fiat alternatives.

COMMODITIES MAY RISE ON CHINA, US TRADE DEAL HOPES

From here, the OPEC monthly oil market report and EIA drilling productivity statistics are in focus. That will continue to feed speculation about emerging supply trends, with the cartel and its allies warning that new output cuts may be needed while US production swells to record levels.

Sentiment trends may overwhelm other considerations however. Bellwether SP 500 futures are pointing sharply higher, hinting at a potent risk recovery ahead. That may follow SCMP reports that China’s Vice Premier Liu He is due to visit the US shortly for talks aimed at easing trade war

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2018/11/13/Crude-Oil-Prices-May-Rise-with-Stocks-on-US-China-Trade-Deal-Hopes.html