Crude Oil Prices Rise Even as Trade War Heats Up

CRUDE OIL GOLD TALKING POINTS:

  • Saudi Arabia reportedly comfortable with crude oil prices above $80/bbl
  • Gold prices echo seesaw US Dollar moves after latest Trump tariff hike
  • EIA inventory flow data and pre-positioning for FOMC meeting in focus

Crude oil prices soared reports circulated around the markets citing unnamed Saudi Arabia sources as saying the kingdom is comfortable with prices north of $80/barrel. That implies the top producer will not step up output to cap even a substantive rise from current levels.

Gold prices oscillated, with the standby anti-fiat asset echoing directionless volatility of the US Dollar. The currency fell against sentiment-geared commodity currencies as risk appetite curiously firmed after the US hit China with more tariffs. It rose against the anti-risk Yen and lower-yielding European FX however.

EIA INVENTORY DATA DUE, GOLD MAY FALL BEFORE FOMC

Looking ahead, EIA inventory flow data is in focus. Economists expect storage to have shed 2.62 million barrels last week. An analogous private-sector estimate from API predicted an increase of 1.25 million barrels, opening the door for an adverse surprise that might

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2018/09/19/Crude-Oil-Prices-Rise-Even-as-Trade-War-Heats-Up-Now-What.html