Oil higher, gold pares losses after minutes

Oil

Crude prices were little changed after the EIA crude oil inventory report showed stockpiles are declining again as refiner activity picked up. The Strategic Petroleum Reserve saw a big draw of 6 million barrels, with crude stocks now at the lowest levels in over thirty years. Gasoline demand was a little soft, but energy traders are not too worried that we are seeing crude demand destruction just yet even as gas prices are making record highs. ​ The beginning of the summer driving season is here and the pent-up demand for travel is so high that Americans will travel regardless of the price at the pump. ​

The oil market remains tight and crude prices seem like they will continue to be supported. ​

Gold pares losses after FOMC minutes

Gold prices pared losses after the Fed’s Minutes signalled they are not considering larger rate hikes. ​ The Minutes included a boosting of the inflation forecast which could be viewed as hawkish, but risks are growing in parts of the Treasuries and commodities markets and that could derail much more aggressive action. ​

Given today’s strong dollar, gold looks like it is ready to consolidate, but a bearish outlook seems unlikely. ​

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.