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Oil slides and gold softens

Oil slides and gold softens



Yesterday’s bullish triggers for oil prices were quickly undone today. ​ Oil prices declined after flows from the Druzhba pipeline resumed and preliminary analysis of the missile that killed two in Poland was likely an errant missile fired by Ukraine’s defense system. ​ It looks like we aren’t seeing an immediate escalation from the Russians and that has tentatively removed some of the short-term supply risks.

After a mixed EIA crude oils inventory report, oil struggled to find direction as inventories rose and fuel inventories fell. ​ It was a report that wasn’t that surprising as gasoline demand improved, diesel demand weakened, jet fuel demand improved as we approach the holidays, and production was steady,

Oil lost less after the White House stated that Russia was ultimately responsible for the tragedy in Poland. ​Although Russia may not have launched the missile that killed the two Polish soldiers, the rest the world is alert to the possibility that the conflict in Ukraine could escalate into a huge conflict with NATO. ​


As the dollar trade weakens, gold appears to be in limbo. ​Gold might be ready for a softening as the dollar rout nears key technical levels.

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