CRUDE OIL & GOLD TALKING POINTS:
- Crude oil prices[1] may break out amid a flood of fundamental news flow
- SPR- and NOPEC-linked hearings, EIA 2018 outlook and API data due
- Gold prices[2] might decline as risk appetite recovery boosts bond yields
Crude oil prices shot higher as US President Trump and his Iranian counterpart Hassan Rouhani exchanged threats on Twitter[3] but the move proved fleeting, with the WTI and Brent benchmarks swiftly retreating to finish the day little-changed. Gold prices fell as the US Dollar[4] corrected higher from Friday’s losses[5], undermining the appeal of anti-fiat assets.
CRUDE OIL PRICES FACE FLOOD OF FUNDAMENTAL NEWS FLOW
Crude traders may have opted against directional commitment as a slew of high-profile releases looms ahead. A US energy subcommittee will hold a hearing on draft legislation to modernize the US Strategic Petroleum Reserve (SPR). The plan envisions leasing underutilized storage facilities. Traders will be keen to see if it will imply accelerated capacity reduction.
Separately, the Senate Energy committee will hold a hearing to examine the factors impacting global oil prices. The sit-down may mark progress toward passing so-called “NOPEC” legislation (an acronym for the “No Oil Producing and Exporting Cartels” Act). This would allow the US government to sue OPEC member states for anti-trust violations.
As if that were not enough, the EIA 2018 International Energy Outlook will be released and while API will publish its weekly inventory flow statistics. The former will help inform global supply expectations while the latter will serve to foreshadow an analogous set
