CRUDE OIL & GOLD TALKING POINTS:
Crude oil prices shot higher after EIA inventory flow data showed US stockpiles shed 4.14 million barrels last week. That topped forecasts calling for a more modest 1.09 million barrel outflow and an API projection signaling a slight build.
Goldprices prose despite a clear hawkish shift in forward guidance from the Federal Reserve. The metal initially fell as the US Dollar rallied, but an about-face reversal soon followed as pre-positioning for the ECB rate decision pushed the bellwether EUR/USD[1] exchange rate upward.
Comments from ECB officials ahead of today’s meeting – particularly those from chief economist Peter Praet – suggested a substantive discussion of the strategy on QE asset purchases would be had. The markets seemed to interpret that to mean that they will soon be phased out.
OIL EYES SAUDI, RUSSIAN LEADERS’ MEETING
From here, soundbites from a meeting between Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putinare in focus. They will discuss joint plans to push for scaling back the OPEC+ output cut scheme on the sidelines of a World Cup match between their countries’ teams.
The two leaders want to boost output to offset delivery disruptions from Iran and Venezuela, which the IEA has said could derail as much as 30 percent of supply. They face opposition from other top producers however, which might make for a contentious meeting when OPEC+ officials gather in Vienna next week.
DOVISH ECB MIGHT ECHO AS GOLD WEAKNESS
As for gold, the knock-on effects of the ECB policy call might remain the driving catalyst. Mario Draghi and company may
