Commodities - Energy
Crude Oil Retests $75 Resistance before Backing Down
Crude Oil (WTI) $73.92 -$0.46 -0.62%
Crude oil prices are down fractionally after rising 3.3% in Wednesday’s session. As we hinted at in yesterday’s update, crude was ready to advance in the event of any sort of stability in broader financial markets. That stability came early in the New York session, as the S&P 500 rallied over 1%. Later when stocks rolled over, however, oil held firm. The government inventory report was a nonevent. Crude inventories fell 1828K barrels, Gasoline inventories fell 8K, Distillate inventories rose 1836K, and Total Petroleum inventories fell 447K; the surplus over the 5-year average fell to 6.6% from 6.8% in the prior week.
While equities are again dangerously close to multi-month lows, oil is safely above recent $69.50 support. Prices again tested $75 resistance in Wednesday’s session before backing down. The risk-reward from the long side does not look compelling from current prices, as stocks are still weak and crude oil is well off its lows.
Commodities - Metals
Gold Licking its Wounds
Gold $1233.35 -$0.15 -0.01%
Gold is licking its wounds after failing to break $1250 resistance earlier in the week. Another retest may be in the works if stock markets break to new lows in the coming days. Otherwise, support is at the upward trendline at $1200 and $1166 horizontal support below that.
Silver $18.29 +$0.01 +0.05%
Silver prices faded further away from $18.50 support in Wednesday’s session. Silver continues its pattern of underperforming gold whether prices are heading up or down. A compelling long entry would be closer to $17 than $18.
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