Crude oil price briefly spiked on inventory data but failed to hold up
Gold prices retreated after posting largest daily advance in a month
Clouded risk sentiment trends, OPEC negotiations stand out as risks
Crude oil prices briefly spiked upward after EIA inventory data showed an unexpected outflow of 553k barrels last week. The outcome clashed with an API estimate published yesterday showing a build of 4.8 million barrels over the same period.
A US Dollar recovery following stellar PMI data in the second half of the North American trading day and continued skepticism about the viability of OPEC supply management effort may have undermined upside momentum. Iraq is at center stage this week after asking for an exemption from planned output cuts.
Looking ahead, a lull in top-tier event risk may open the door for risk trends to take the reins. S&P 500futures are trading flat ahead of the opening bell on Wall Street, offering little by way of directional guidance. The landscape may change however as another round of Q3 earnings reports crosses the wires.
Gold prices retreated – failing to find follow-through on the prior day’s advance as expected – as US Treasury bond yields moved higher, undermining demand for non-interest-bearing assets. Markets may remain non-committal as investors look ahead to Friday’s US GDP data to drive Fed rate hike speculation