We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • The $USD may fall against the Japanese Yen as bearish technical positioning plays out. The Nikkei 225 stock index could follow suit. Get your market update from @IlyaSpivak here:https://t.co/FeaxCvsjH2 https://t.co/jqPGFJeA8i
  • #CLP, #ZAR and the #COP are expected to be the most active Emerging Markets currencies vs #USD with 1-week implied volatilities at 14.70, 11.90 and 11.39 respectively
  • President Trump likely to meet with top trade advisers on Thursday to discuss December 15 tariffs on Chinese goods according to Reuters sources #Tradewar
  • $USDJPY Daily Pivot Points: S3: 108.06 S2: 108.31 S1: 108.43 R1: 108.68 R2: 108.8 R3: 109.05 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • $EURUSD breaking above falling resistance from June after the #Fed and comments from Chair Jerome Powell sent #USD lower. Next key barrier at 1.1182. Granted, we still have #ECB, #UKelection2019 and Dec 15 US-China tariff deadline. Volatility still in the cards https://t.co/zilL59V8ul
  • $GBPUSD Daily Pivot Points: S3: 1.3056 S2: 1.3104 S1: 1.3124 R1: 1.3173 R2: 1.3202 R3: 1.325 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • $EURUSD implied volatility surged to 10.1% for the overnight tenor with interest rate decisions from the Fed and @ecb due today at 19:00 GMT and tomorrow at 12:45 GMT respectively. Get your market update from @RichDvorakFX here: https://t.co/c4MwWwtUEg https://t.co/srZifnviYv
  • $EURUSD Daily Pivot Points: S3: 1.102 S2: 1.1043 S1: 1.1054 R1: 1.1076 R2: 1.1089 R3: 1.1111 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.01% 🇳🇿NZD: 0.61% 🇨🇦CAD: 0.45% 🇬🇧GBP: 0.29% 🇯🇵JPY: 0.16% 🇨🇭CHF: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Rf0O7djBLn
  • S&P Global Ratings upgrades Brazil outlook from stable to positive $USDBRL
Crude Oil Prices Up Despite New Trade Woes, Stock Data Eyed

Crude Oil Prices Up Despite New Trade Woes, Stock Data Eyed

2019-12-04 07:00:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Crude oil managed to buck an overall weaker risk trend
  • Trade worries passed it by as the market looked to more energy-specific factors
  • Gold was steady but close to one-month highs

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

Crude oil prices managed to dodge wilting risk appetite in the Asia-Pacific region Wednesday and edge higher.

As usual these days the risk retreated was rooted in the US-China trade story whose latest twist came late Tuesday in comments from US President Donald Trump. He said that he liked ‘in some ways’ the idea of waiting until after 2020’s Presidential Election which won’t take place for another twelve months. Whether this was am absolutely serious comment or not, investors who had been hoping for some movement this month before new US tariffs on Chinese imports kick in on the fifteenth decided they had heard enough and sold equity markets down.

Crude however was supported by expectations that the Organization of Petroleum Exporting Countries will lengthen and maybe deepen production cuts this week, augmented by Russia. Moreover, Tuesday’s US weekly stockpile data from the American Petroleum Institute saw a surprise fall in crude oil levels of 3.7 million barrels. The market had been looking for less than half that and will now watch for similar figures from the Energy Information Administration, due later Wednesday, mindful that the API data did contain news of higher gasoline inventories.

Gold prices were steadier in the region but remained very close to one-month highs as those trade worries kept underlying demand firm.

There was some bullish, market-specific news around too. The Perth Mint’s gold product sales reportedly rose to their highest level in a year, while India’s gold imports soared in November as the huge retail market re-stocked.

Crude Oil Technical Analysis

Prices remain in the gradual, daily-chart uptrend channel which has been in place since early October.

Crude Oil Prices, Daily Chart

Still, this channel hasn’t faced a serious upside test since early November and prices are currently more likely to test the base. That comes in at $55.24/barrel. The bulls may need to top resistance at $57.12 to obviate the near-term prospect of a break lower and, perhaps, form a platform for more gains.

Clearly, however, the market may well hold off from major moves until it knows definitively what OPEC has planned.

Gold Technical Analysis

Spot prices have broken above the trading range which had contained them through much of last month.

Spot Gold Prices, Daily Chart

They haven’t yet manage to do so on a daily closing basis however, although so far it looks likely that they will Wednesday. If the bulls can hold prices above that $1476.88/ounce support point at the top of the old range, then they might be able to have a push at the $1488.95 point. Getting there would mark another significant claw-back of the falls seen between November 4 and 8 and would probably be seen as a very bullish near-term sign.

Commodity Trading Resources

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.